The benchmark Sensex today crossed record 23,000 level for the first time but closed a tad lower at 22,994.23, posting its biggest single-day gain of 650.19 points since September 2013, on strong FII buying in banking, auto and power stocks ahead of election results next week.
In the day trade, the 30-share BSE barometer scaled its all-time high of 23,048.49 points as ICICI Bank, Tata Motors and Reliance Industries spurted.
The broad-based Nifty of the National Stock Exchange too spurted by 198.95 points, or 2.99% to settle at record closing of 6,858.80. It touched an all-time intra-day high of 6,871.35 points, breaching previous record of 6,869.85 reached on April 25.
Both the indices posted their biggest single-session gains since September 19, 2013.
Buying activity gathered momentum as funds and investors were seen creating positions before the outcome of ongoing general elections next week.
"As the election D-day is approaching closer, the markets are rallying on anticipation of a favorable outcome," Dinesh Thakkar, Chairman & Managing Director, Angel Broking, said.
ICICI Bank rose the most by 6.63% among Sensex scrips, while Tata Motors spurted by 5.57%.
Hindalco (5.35%), HDFC Bank (5.31%) and BHEL (5.21%) were among top five gainers among index stocks. Besides, ONGC (4.13%), HDFC (4.07%), RIL (3.93%), SBI (3.88%) and L&T (3.29%) supported the rally.
A firming trend at other Asian bourses were other factors behind today's rally, brokers said.
In Sensex components, 27 stocks gained, while 3 declined.
The banking sector index gained the most by surging 5.34% to 15,721.36 followed by realty index by 4.38% to 1,420.52.
The power index rose by 4.12% to 1,743.52 and PSUs index by 3.57% to 6,767.66.