The Sensex at the Bombay Stock Exchange breached the 32,000 mark for the first time ever in morning trade. Later, the Sensex remained strong, and had surged 236 points, or 0.7 percent, to 32,041 a short while ago.
The Nifty at the the National Stock Exchange also touched a new intra-day peak, and had later climbed 60 points, to 9,876.
Stocks rose amid expectations of an interest rate cut by the Reserve Bank of India after retail inflation in June fell to a “record low”. Investors were also encouraged after the US central bank chief, Janet Yellen indicated a gradual approach to raising interest rates.
And at the forex market, the rupee had strengthened 11 paise, to 64.43 against the dollar in afternoon deals.