The 30-share BSE barometer, after opening on a strong note, breached 24,000 level to trade at an all-time high of 24,068.94 by surging 517.94 points or 2.19 percent at 12 pm. JPN/Agencies
The broad-based Nifty of the National Stock Exchange zoomed by 151.50 points, or 2.16 percent, to hit a new high of 7,165.75.
The rally was led by stocks of Coal India, Reliance Industries, SBI, ICICI Bank, NTPC, ONGC, Larsen and Toubro, ITC, Maruti Suzuki and Infosys.
The Sensex had gained over 1,206 points in the last two trading sessions.
Stocks of PSUs, oil and gas and capital goods sectors turned investors' fancy, helping the key indices to touch historic highs. Bharat Heavy Electricals jumped 14 percent, while Oil and Natural Gas Corp rose 4.3 percent.
The power sector index gained the most by rising 4.45 percent to 1,875.41 followed by capital goods index by 4.17 percent to 13,450.52.
Rupee up 28 paise against dollar
The rupee erased its early gains but was still quoted higher by 28 paise to 59.77 against American currency in the morning trade on fresh selling of dollars by banks and exporters on the back of persistent foreign capital inflows into equity market.
Weakness of the dollar in the overseas market also boosted the rupee, a forex dealer said.
The rupee resumed higher at 59.70 per dollar as against the last closing level of 60.05 at the Interbank Foreign Exchange market and firmed up further to a high of 59.59 before quoting at 59.77 per dollar at 1000 hours.
It hovered in a range of 59.59-59.78 per dollar during the morning deals.
Banks and exporters preferred to reduce their dollar position on hopes of more foreign capital inflows on the back of strong equity market.
In New York market, the dollar fell against the British pound yesterday as investors looked ahead to two key UK data reports due Wednesday that could determine if the pound takes another run higher to USD 1.70 level.
The 30-share BSE barometer, after opening on a strong note, breached 24,000 level to trade at an all-time high of 24,068.94 by surging 517.94 points or 2.19 percent at 12 pm.