The Sensex hit a new record high of 40,392.22 points in intra day trade today, surpassing a record high of 40,312 points hit in the month of June.
The index closed 77 points higher at 40,129 points.
Today was the fifth straight day of gains and the momentum for now looks exceedingly strong. Gains on Thursday was led by a solid rally in Yes Bank, following a notice to the exchanges that the bank has received definite binding offer of investment of $1.2 billion through fresh issuance of shares.
"The Bank would like to inform that it has now received a binding offer from a global investor for an investment of US$ 1.2 Billion in the Bank through fresh issuance of equity shares, subject to Regulatory approvals/conditions as well as Bank's Board and Shareholders approvals," the bank said in a statement.
Other notable gainers from the Nifty included stocks like Zee Entertainment, which jumped 9 per cent and SBI, which gained 8 per cent.
A few of the laggards in trade included names like Tech Mahindra and Mahindra and Mahindra.
Strong buying was seen across global markets, following the US Fed decision to cut interest rates. The S&P 500 had rallied to fresh record highs.