The Sensex gained in trade today closing at a new lifetime high on sustained buying by foreign funds.
The Sensex ended the day higher by 32 points, while the Nifty rallied 8 points in trade today.
PSU banks were the star performers in trade today with stocks from the sector showing substantial jumps, following hopes of improvement in asset quality.
Bank of India was once again the star in trade today jumping another 8 per cent in trade after having risen almost 23 per cent on Thursday.
Other notable gainers from the PSU space were Union Bank, Bank of Baroda, Punjab National Bank and Canara Bank. State Bank of India also closed higher by almost 4 per cent.
Private sector banks were a little subdued in trade today, after having risen sharply in the last few weeks.
Auto stocks were also in the limelight with stocks like Mahindra and Mahindra and Tata Motors gaining ground.
IT stocks also rallied with Wipro and HCL Tech among the gainers. Notable losers from the Nifty were ITC, Reliance Industries, ONGC , NTPC and Sun pharma.
Mid cap stocks also joined the rally with Aurobindo pharam gaining 5 per cent, while IFCI rallied 6 per cent in trade.
Meanwhile, most of the Asian markets ended the day lower on lack of dovish comments from the Federal Reserve.