The markets have extended their winning spree for the fourth consecutive day.
The Sensex ended at 19,994, higher by 145 points and the Nifty regained the 6000k mark to end at 6,009, up 48 points.
The midcap and smallcap indices also added 1% each. In the process, the Sensex has gained 857 points in the last four trading days.
Earlier the day, the markets started on a strong note with the Sensex opening up 220 points. This jump was on back of positive cues from Asia and Wall Street.
However, as the day progressed the markets pared some of its early gains. In the afternnon trades the markets again regained some strenght as RIL started moving north.
From there on the markets continued to move sideways. The food inflation touching a four month low failed to have any effect on the market.
In the Asian markets, after a positive opening, the indices continued to trade higher.
The Hang Seng finally closed up 0.8% at 23,448 while the Nikkei advanced nearly 2%.Jakarta Composite was the top gainer in the Asian markets advancing 2.2%. Shanghai Composite, Straits Times,Seoul Composite and Taiwan Weighted gained 0.6% - 1%.
The European markets too have opened in the green. CAC nad DAX are trading higher by 0.2% and 0.3%. FTSE has added 0.4%.
Back home, food inflation fell to four months' low at 8.6% for the week ended November 20
as prices of vegetables, wheat and pulses declined on increased output and arrival of kharif crop in the market.
Food inflation in the previous week was 10.1%.This is the seventh consecutive week of decline in the food inflation as availability of food commodities improved after the end of the monsoon season.
Among the BSE sectoral indices, Realty index up 2.2%, lead the pack followed by Oil & Gas, Metal, IT, Consumer Durables and Bankex gaining 1% each.
However, Auto, Capital Goods, Power and FMCG closed in the negative.
Meanwhile, sugar stocks were in limelight for the second consecutive day.
Sugar companies are expected to improve their profitability in the current year beginning October on lower levy obligation, higher ethanol prices and improved cogeneration.
Earlier, on November 29, sugar prices in the spot market rose to their highest level in the last seven months.
Among individual stocks, Balrampur Chini, EID Parry, Bajaj Hind and Shree Renuka Sugars gained 3-4% on the BSE.