The Nifty hit a new record high in trading ending the day with gains for the fourth straight day. The new record was thanks to the interest rate cut by the RBI which boosted sentiments.
The Sensex closed the day higher by 144 points, while the Nifty closed the day at 522 points. Leading the set of gainers wad HDFC which single handedly propelled the indices. The stock ended the day higher by 6 per cent.
Suzlon Energy, Unitech, JP Associates and Sintex were among the top traded stocks on the NSE. Kotak Mahindra Bank shares rallied after the company reported a good set of numbers.
Hathway Cable shares rose after the company's stock was upgraded by a foreign brokerage firm. Other stocks that rallied in trade were mid cap stocks like Voltas and Unitech.
Tata Sponge which reported a poor set of results was among the losers after profits at the company dropped.
Meanwhile, markets in Europe were trading with gains awaiting an ECB decision on a stimulus package. The German DAX, French CAC and the UK's FTSE were all trading higher.