Stocks built on gains to hit fresh life-time highs on late morning trade on across the spectrum buying led by financials, banks, metal, consumer durables, energy, power and basic materials amid higher Asian cues.
The benchmark BSE Sensex spurted by 343.42 points, or 0.99 per cent, to an intra-day record high of 34,935.81. The broader Nifty also zoomed by 90.15 points, or 0.84 per cent at 10,771.40.
Domestic sentiments were upbeat on positive macro data and recovery in corporate earnings along with high optimism over global peers.
A robust industrial production (IIP) growth to 17-month high of 8.4 per cent in November despite the retail inflation logging a 17-month high of 5.2 per cent in December supported the sentiment.
Major gainers were HDFC 4.76 per cent, ICICI Bank 3.40 per cent, Tata Steel 2.04 per cent, NTPC 1.42 per cent and Kotak Bank 0.99 per cent.
Foreign portfolio investors (FPIs) sold shares worth Rs 158.16 crore on net basis while domestic institutional investors (DIIs) bought equities to the tune of Rs 696.25 crore last Friday, provisional data showed.
Asian markets gained and built on the strong start to this year and headed for a fresh record high amid optimism in global growth.
The US markets will remain shut today for the Martin Luther King Jr. holiday.
Better-than-expected quarterly earnings from some financial majors and robust economic data boosted the benchmark US indices to fresh closing highs last Friday.
Rupee surges 24 paise against US dollar
The rupee surged by 24 paise to 63.39 against the greenback in late morning deals on sustained bouts of dollar selling from banks and importers banks amid rallying local equities and weak dollar overseas.
The rupee opened higher at 63.45 per dollar from last Friday's closing level of 63.63 at the inter-bank foreign exchange market today.
The domestic unit hovered between 63.48 and 63.33 during morning deals, before trading at 63.39 at 1130hrs.
"Rallying equities to record highs amid strong macro indicators as well as a weak dollar overseas were supporting the rupee sentiment," a dealer said.
The US dollar was trading at three-year lows against a basket of currencies in early Asian trade.