The Sensex rose by 57points on persistent buying in capital goods, IT and bankingstocks as rejection of no-trust motion against the governmentbolstered hopes of more reform measures.
Higher global advices coupled with sustained capitalinflows also boosted the market sentiment.
The BSE barometer resumed higher at 18,510.94 and shot upfurther to 18,567.68 before ending at 18,517.34, showing a netgain of 56.96 points, or 0.31 per cent. Yesterday, it was upby 131.06 points or 0.72 per cent.
The NSE 50-share Nifty also moved up further by 12.95points or 0.23 per cent to finish at 5,627.75.
Smart rise in heavyweights like ITC, Infosys, L&T, HDFCBank, SBI and Mahindra & Mahindra mainly supported the Sensexsurge while fall in Tata Motors, ICICI Bank and RIL restrictedthe rise to some extent, a broker said.
An attempt by former UPA ally Trinamool Congress to bringa no-confidence motion against the government over FDI inretail failed today in the Lok Sabha for want of requisitenumbers, which supported the uptrend, the broker said.
"In the coming days, market sentiment would depend on howparliamentary winter session proceeds," Amar Ambani, Head ofResearch, IIFL said.
Capital goods, IT, Teck, FMCG, PSU and banking stocksfirmed up on good buying enquiries.
State Bank of India was the biggest gainer among30-Sensex scrips with gains of 1.89 per cent after thegovernment said it will recapitalise PSU banks to meet BaselIII norms. Private bank HDFC Bank rose over 1 per cent whileFMCG major ITC gained 1.17 per cent.
Hindustan Copper surged by 11.33 per cent to Rs 266.30after the government announced plans to divest 4 per centequity in the company.
Asian stocks ended higher as a preliminary survey showedChina's manufacturing may grow this month. Key benchmarkindices in Hong Kong, Indonesia, Japan, Singapore, Taiwan andSouth Korea rose in the range of 0.82 per cent to 1.56 percent, while China's Shanghai Composite fell 0.72 per cent.
Overall, 16 out of 30 Sensex-based scrips closed in the green while others finished in the red.
Among sectoral indices, the BSE-Consumer Goods rose by1.07 per cent and BSE-IT by 0.85 per cent while BSE-Oil&Gaseased by 0.49 per cent.
"Renewed buying was seen in select banking stocks likeHDFC bank and SBIN on hopes of Banking Bill being passed inthe current Parliament session," Nidhi Sarswat, Sr ResearchAnalyst, Bonanza Portfolio, said.
"The no confidence motion, as expected, has beenrejected. LIC is allowed to raise stake to 30 per cent incompanies from 10 per cent which will help address the keyconcern of fiscal deficit. This being the single largestfactor along with indirect revenue targets exceeding, seemsgood for the market," Kishor P Ostwal, CMD, CNI Research said.
Engineering major L&T moved up by 1.72 per cent, Infosysby 1.55 per cent, M&M by 1.21 per cent and Sterlite Ind 1.09per cent. Wipro gained 1.08 per cent, NTPC 1.05 per cent andHDFC Bank 1.03 per cent.
However, Tata Motors dipped by 2.49 per cent, ICICI Bankby 1.03 per cent and RIL by 0.52 per cent.
European markets were trading higher in their early tradeas its indices in France, Germany and London inched up by 0.27per cent to 0.73 per cent.
The market breadth remained positive with 1,431 stocksgaining ground while 1,366 settling with losses.
The total market turnover declined further to Rs 1,931.18crore from Rs 1,954.27 crore yesterday.
Meanwhile, Foreign Institutional Investors (FIIs) pickedup shares worth Rs 182.59 crore yesterday, as per theprovisional data issued by stock exchanges.