The Sensex on Thursday jumped 232 points, or 1.2%, to close at a 3-month high of 19,736 and the broad-based Nifty breached the 6,000-level in early trade as rate-sensitive banking and realty stocks notched up smart gains on hopes of rate cut by the Reserve Bank of India in its annual policy on Friday.
The Nifty breached 6,000-level after more than three months in early trade before finishing at 5,999, showing a gain of 69 points, or 1.2%.
"Sentiments were bullish on the expectations of a cut in repo rate and cash reserve ratio," said Pankaj Pandey, head of research, ICICIdirect.com.
"Breaching 20,000 level will not be a tough task but going ahead the market is likely to consolidate around current levels. Any sustained rally will be possible only after general elections because of uncertainty relating to reform process."
Analysts expect the RBI to cut its key lending rate and the cash reserve ratio by 0.25 percentage points each to ease tight liquidity conditions in the market.
"The outlook for the market is positive and it can test 6050 in the near term," said said Alex Mathews, research head, Geojit BNP Paribas Financial Services.