Continuing its upward march for the third day, the BSE benchmark Sensex on Tuesday jumped by 130 points to close at one-week high of 20,160.82 and the NSE Nifty regained the crucial 6,100-level on heavy buying in RIL, Coal India, Hero MotoCorp and ITC shares.
The 30-share index, which had gained 356 points in the last two trading sessions, saw volatile trading but advanced by 130.05 points, or 0.65% to close at 20,160.82. This is Sensex's highest closest since 20,223.98 on May 20.
The 50-share National Stock Exchange index Nifty regained the key 6,100 level after a gap of nearly a week by rising 28.10 points, or 0.46%, to 6,111.25.
Also, the MCX-SX flagship index SX40 closed higher by 51.64 points, or 0.43%, at 11,947.27.
Hero MotoCorp was the star performer of the day rising over 5% on BSE ahead of monthly sales report. Coal India Ltd (CIL) shares rose over 3% on robust earnings and first price hike in two years. RIL, which attracted buyers for the second day on new gas find, jumped nearly 2%.
Other Sensex heavyweights like ITC, ICICI Bank, ONGC and TCS rose in 1-2% range.
"This week has started with recovery from lower levels and Nifty is once again above 6,100 level and Sensex above 20,000 level -- psychologically important for confirming further uptrend," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
In sector-wise indices, BSE Oil and Gas sector index gained the most by rising 1.65% to 8,950.96, followed by auto index by 1.33% to 11,076.54.
GAIL ended marginally higher after Q4 profit rose 28%. Outside broader indices, earnings-related action was seen in Havells India which touched a new high, CESC rose over 2%, Colgate (1.2 pc) and Tata Global (0.77 pc).
Meanwhile, Muthoot and Manappuram ended lower after RBI imposed fresh restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs etc.
AstraZeneca Pharma India slumped over 16% after the company intimated floor price for OFS at a substantial discount to the prevalent market price.
Brokers said the market remained in bullish mode on foreign funds buying, following steady inflow of positive reports from blue chip stocks. Besides, short-covering ahead of expiry of May contract on Thursday also boosted the market sentiment, they added.
A firming Asian trend and higher opening in Europe as investors awaited reports that may show US consumer confidence and house prices rose, further aided domestic markets.
Key indices from China, Hong Kong, Japan, Singapore and South Korea ended up while the one from Taiwan finished just lower. Europe was trading remarkably higher on the back of firm Asian cues. FTSE (UK) was up by 1.67%, followed by CAC (France) 1.49% and DAX (Germany) 1.10%.
Back home, major gainers were Hero MotoCorp (5.09%), BHEL (3.30%), Coal India (3.01%), M&M (2.22%), ONGC (1.94%), ITC (1.84%), Bharti Airtel (1.63%), NTPC (1.61%), Tata Steel (1.37%), Bajaj Auto (1.31%), Dr Reddy's Lab (1.14%), ICICI Bank (1.13%) and TCS (1.12%).
However, Sun Pharma dropped by 1.90%, followed by SBI (1.45%), Sterlite Ind. (1.40%), Cipla (1.18%), HDFC (0.83%) and L&T (0.72%).
Among the sectoral indices, S&P BSE-Oil&Gas rose by 1.65%, followed by S&P BSE-Auto (1.33%), S&P BSE-PSU (1.23%) and S&P BSE-CD (1.12%) while S&P BSE-HC fell by 0.68%.
Total market breadth was slightly positive as 1,204 stocks closed with gains while 1,149 finished with losses. The total turnover moved down further to Rs. 1,829.04 crore from Rs. 1,888.00 crore on Monday.
Meanwhile, Foreign Institutional Investors (FIIs) bought shares worth Rs. 406.03 crore on Monday, as per provisional data with stock exchanges.