Mumbai: Benchmark Sensex broke past the 38,000-barrier for the first time, while the NSE Nifty extended its record run for the fifth day on Thursday as optimism surrounding the India growth story continued to override global trade concerns.
Banking stocks sparkled for yet another session, with ICICI Bank topping the Sensex gainers list.
Uninterrupted foreign and domestic fund inflows amid robust corporate earnings shows that investor sentiment remains skewed towards equities, brokers said.
Foreign markets were mixed after China announced retaliatory tariffs on US imports.
However, Dalal Street shrugged off the latest escalation in the trade showdown between Washington and Beijing, and continued its march upwards.
The 30-share Sensex breached the historic 38,000-mark in opening trade and remained in the green throughout the session.
It finally finished 136.81 points, or 0.36 percent, higher at 38,024.37, breaking its previous record close of 37,887.56 reached on Wednesday.
The index has taken 11 sessions to scale the 38,000 mark from 37,000 level reached on 26 July.
The broader Nifty rose 20.70 points, or 0.18 percent, to close at 11,470.70 -- surpassing its previous high of 11,450 reached on Wednesday.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 568.63 crore, while domestic institutional investors (DIIs) bought equities to the tune of Rs 30.25 crore on Wednesday, provisional data showed.
"Green shoots in earnings and growth prospects of domestic economy overrode global headwinds caused by trade tensions.
"On the other hand, oil price hovering near the recent low and increasing exposure of FIIs to domestic equity bodes well for the market direction. Investors are also focused on tomorrow's IIP data with a positive consensus of 5.6 percent growth," said Vinod Nair, Head of Research, Geojit Financial Services.
ICICI Bank surged 4.64 percent after the company denied media reports alleging covering up of bad loans.
Other winners were Axis Bank 3.86 percent, Vedanta 2.56 percent, SBI 2.53 percent, NTPC 1.93 percent, Power Grid 1.69 percent, Coal India 1.41 percent, Tata Steel 1.29 percent and Infosys 1.28 percent, among others.
However, Bharti Airtel tumbled 4.64 percent, followed by ONGC, Kotak Bank, IndusInd Bank, L&T, HDFC Bank, Hero Motocorp, Asian Paints, Maruti Suzuki, Yes Bank, Sun Pharma, HDFC and HUL.
Among sectoral indices, BSE realty rose 2.39 percent, metal 1.37 percent, bankex 1.32 percent, PSU 1.08 percent, power 1.02 percent, infrastructure 0.82 percent, finance 0.67 percent, FMCG 0.36 percent, IT 0.30 percent and teck 0.14 percent.
Telecom, consumer durables, healthcare, capital goods, oil and gas and auto succumbed to late selling and shed up to 1.31 percent.
The broader markets displayed a firm trend. The BSE mid-cap index advanced 0.59 percent while the small-cap gauge inched up 0.29 percent.
Globally, Asian markets ended mixed after Beijing slapped retaliatory tariffs against US imports worth about USD 16 billion in a tit-for-tat response to the Trump administration's duties on Chinese goods.
China's Shanghai Composite Index rose 1.83 percent and Hong Kong's Hang Seng moved up 0.88 percent, while Japan's Nikkei shed 0.20 percent.
In the Eurozone, Frankfurt's DAX was up 0.48 percent and Paris CAC declined 0.05 percent in their late morning deals. London's FTSE down 0.55 percent.
US stock market indices closed mostly lower on Wednesday as investors grappled with the fresh round of tariff clashes.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Aug 09, 2018 18:12:00 IST