It was off to a solid start, but gave up a big chunk of its leads in part due to late sell-off following a drop in India's manufacturing activity.
Profit-booking in banking, auto and realty stocks ensured the 30-share index barometer ended with a modest gain of 66.12 points, or 0.25 percent, at 26,220.95. This is its strongest close since 26,283.09 on August 31.
The index has added almost 605 points in the last three sessions since RBI announced the policy rate cut.
The NSE Nifty was no exception to profit-booking, which slipped before settling higher by 2 points, or 0.03 percent, at 7,950.90.
Investor appetite returned after RBI Governor Raghuram Rajan on Tuesday pulled off a surprise by announcing a bigger-than-expected benchmark rate cut of 50 bps to 6.75 percent -- the lowest in four and a half years -- to spur growth.
Lupin blazed a trail, up 3.62 percent, on expectations of bullish September-quarter earnings. Other Sensex gainers were Sun Pharma, TCS, Dr Reddy's, L&T, ONGC and Infosys.
Sectorally, BSE healthcare was in pink of health as it rose 1.46 percent, followed by consumer durables, capital goods and technology.
Foreign investors net bought shares worth Rs 116.08 crore yesterday, data showed. The market will remain shut tomorrow on account of Gandhi Jayanti.


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