The BSE benchmark Sensex on Tuesday rose by 85 points to touch a fresh 31-month high on sustained buying by funds in mainline stocks, particularly Reliance Industries.
The 30-share Sensex, which had gained over 338 points in the previous session, added another 85.01 points to close at 18,645.06, the highest closing since February, 2008.
The broad-based National Stock Exchange index Nifty also breached 5,600-point level by rising 27.05 points to end the day at 5,604.00. The upsurge in the market was supported by reports of higher direct tax collection by 14 per cent in the first five months of this fiscal.
Trading sentiment also also got a boost from reports of the US proposing to spend $50 billion to bolster its economy which is expected to help the domestic firms. Market leader Reliance Industries, gained Rs 8.65 at Rs 961.85. IT stock Infosys Technologies spurted by Rs 24.05 to Rs 2,8555. In 30 BSE components, 18 stocks closed with 12 ending with losses.