Buying by investors to cover their pending positions on settlement in the derivatives segment helped the barometer touch 21,000 level in day trade after a gap of over one month. The index gained 316 points in the previous three sessions.
The broad-based National Stock Exchange index Nifty rose by 38.75 poins, or 0.62 percent, to 6,238.80 led by FMCG and capital goods stocks.
"FIIs continued to show optimism in the Indian stock market, and were net buyers, particularly since last two weeks, and this also boosted market sentiment," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
Brokers said the market remained in bullish mood ever since the government pledged to narrow down fiscal deficit and tax cuts in the interim budget last week.
Among Sensex stocks, Gail was the biggest gainer rising by 2.97 percent. FMCG major ITC jumped 2.07 percent, HDFC by about 1 percent and Mahindra & Mahindra by 2 percent. Wipro touched its 52-week high before closing up by 1.38 percent. On the other hand, Sesa Sterlite and Tata Steel were among the biggest losers with losses of up to 3.23 percent.      

In 30-BSE index components, 22 stocks gained. The FMCG sector index gained the most by rising 0.99 percent to 6,505.67 followed by capital goods by 0.94 percent to 10,254.45. Auto sector index rose by 0.86 percent to 12,427.90 and healthcare index by 0.82 percent to 10,599.49.
The market will remain close on Wednesday on account of 'Mahashivratri'.


Latest News  from Business News Desk