The NSE 50-share Nifty also rose by 132.50 points or 1.67

Mumbai: The NSE 50-share Nifty also rose by 132.50 points or 1.67 per cent to end at 8,086.85 after touching an historic high of 8,141.90. In four weeks in a row, it has zoomed by 518.30 points, or 6.85 per cent.

Rise in foreign direct investment (FDI) in Q1 June which comfort the balance of payment (BoP) position and hopes of more foreign funds inflow after Prime Minister's Japan's visit too aided the market up-move, brokers said. Optimism that the Narendra Modi-led government would announce more reforms that could bring economy back on track, they added.

Hard selling India as a manufacturing destination, Prime Minister Narendra Modi invited Japanese investments, saying the era of "red tape" has been replaced by "red carpet" with ease of doing business and liberalisation. Buying activity in small and midcap also gathered momentum, with the BSE smallcap rising by 3.53 per cent and midcap index by 3.98 per cent, outperforming Sensex. On Friday, the European Central Bank (ECB) surprisingly cut its main policy rates and also announced additional measures to stimulate the deteriorating economy.

Global markets showed some positive signs as tensions within Russia and Ukraine seemed to ease as they agreed on a cease-fire in eastern Ukraine, sending lower brent crude prices to be 16-month low near USD 100 a barrel on Wednesday. Buying was seen mainly across-the-board as 11 of 12 sectoral indices closed in the green between 1.62 per cent and 5.22 per cent with consumer durable, capital goods, IT, HC, Oil&Gas, Metal, Realty and Power, taking the lead.