The Nifty rose as much as 0.50 per cent to an all-time high of 6,622.80 while the Sensex also rose 0.5 per cent to a lifetime high of 22,162.52 to surpass their previous record highs hit just on Tuesday.
The strong momentum in Indian stock markets has come on the back of hopes of a stable government post elections due by May. A strong government will help accelerate the much-needed reform process and decision making needed to kick-start India’s sluggish economy, growing at the slowest pace in a decade, analysts say.
Improving economic fundamentals have also helped boost sentiments on the Street, analysts say. India’s current account deficit has narrowed sharply, while inflation has eased to a 25-month low.
The rupee’s dramatic rise has added to cheer on the Street. The rupee strengthened to its highest level in eight months on Wednesday morning. It rose to 60.17 per dollar today, its highest since July 30.
Blue chips such as ICICI Bank extended recent gains bolstered by buying from foreign institutional investors, while strength in other Asian markets also helped.
Asian shares raced to two-week highs on Wednesday, with investor confidence getting a much needed boost from upbeat US data and lingering hopes China may take steps to stimulate its sagging economy.