Market update: BSE Sensex, Nifty log new highs on Narendra Modi's Independence-day pledge

The BSE Sensex rose for the fifth day, gaining over 287 points to log a new closing peak along with NSE Nifty, which soared about 83 points, as investors cheered Prime Minister Narendra Modi's August 15 pledge to boost infrastructure and manufacturing.

Brokers said encouraging June quarter earnings by several bluechip companies and positive global cues on easing geo-political tensions over Ukraine, also bolstered the domestic sentiments.

After moving in a narrow range in early trade, the 30-share Sensex climbed to new intra-day high of 26,413.11 as buying momentum picked up. Thus, it bettered its previous all-time peak of 26,300.17 hit on July 25, 2014.

Boosted by a flurry of buying in PSU, oil and gas, capital goods, banking, infrastructure, consumer durables, auto and metal scrips, the Sensex settled at 26,390.96 - a new record at close - gaining 287.73 points or 1.10 per cent. Its previous record at close was 26,271.85 reached on July 24. In five sessions, the gauge has rallied over 1,060 points.

ICICI Bank, ONGC, Tata Motors, Axis Bank, Cipla and BHEL were among prominent gainers in 24 Sensex counters that rose.

The 50-scrip NSE Nifty also reclaimed the 7,800-mark for the fisst time since July 25, by climbing 82.55 points, or 1.06 per cent to close at new high of 7,874.25. It surpassed its previous high at close of 7,830.60 on July 24.

The broader index also hit an intra-session record high of 7,880.50, surpassing previous peak of 7,840.95 (July 24).

"Markets witnessed a strong rally, which was boosted by positive statements from Prime Minister Narendra Modi, who emphasized the need for better governance and focus on improving infrastructure and manufacturing sector," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Positive global markets and easing crude oil prices also further strengthened the overall buying with small caps and midcaps participating well, she added.

Sectorally, the BSE PSU index gained the most by surging 2.83 per cent, followed by the oil and gas sector index rising 2.64 per cent, Banking index up 2.36 per cent, Capital goods index 2.33 per cent and Auto sector index 1.59 per cent.

Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 625.18 crore in the previous session, according to provisional data from the stock exchanges.