The 30-share index, which had gained 669.92 points in the previous three sessions, was up by 66.36 points, or 0.23 per cent, to 28,518.53 with the sectoral indices led by auto, FMCG and banking were trading in positive zone.
Reserve Bank Governor Raghuram Rajan, in his last monetary policy review on August 9, sided with four of the five members of the Technical Advisory Committee that recommended to leave interest rates on hold, citing sticky inflationary tendency.
Global financial services major Citigroup has maintained year-end Sensex target at 28,800 amid expected rise in interest rates by the US Fed post its chair Janet Yellen saying the case for rate hike was strengthening.
Market rally continued for the third straight session today, with Sensex surging over 109 points to end at a fresh 13-month high of 28,452.17 on sustained fund inflows despite a caution ahead of the release of key macroeconomic data later in the day.
Riding on a strong stock market sentiment, the total market capitalisation (m-cap) of BSE-listed companies surged to a lifetime high of over Rs 111 lakh crore Wednesday.
The Union Cabinet on Wednesday approved permanent residency plan for foreign investors.
The National Stock Exchange's index Nifty surged by 55.90 points, or 0.63 percent to, 8,800.25.
The rupee staged a solid recovery against the US dollar Tuesday by rising 16 paise to end at 67.02, its highest highest level in a month, on heavy selling of the greenback by exporters and banks.
The Finance Minister said that foreign investment is important for India in order to have larger investment in infrastructure sector.
Sensex zoomed over 440 points to close at an over 13-month high of 28,343.01, while the broader Nifty went past the psychological 8,700-level to finish at 16-month high of 8,744.35, lifted by positive global cues.
Reserve Bank and the government are exploring introduction of interest-free banking, also known as Islamic Banking, to financially include sections of the society that remains excluded due to religious reasons.
To tap upbeat investor sentiment, as many as three companies will come out with their initial public offering to raise over Rs 18 crore this week.
Also, the NSE Nifty gained 129.90 points, or 1.51 percent, to 8,737.35.
The rupee recovered 7 paise to 67.11 against the US dollar in early trade Tuesday on selling of the American currency by exporters and banks amid a higher opening in the domestic equity market.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Monday called for ushering new owners or managers for companies whose loans accounts have gone sticky, to improve their operational efficiency.
Retail inflation shot up to nearly 2-year high of 6.07 percent, while the one based on wholesale prices soared to a 23-month high of 3.55 percent in July.
Indian monetary policy is likely to stay broadly unchanged when Urjit Patel takes over as Reserve Bank of India governor, according to a Reuters poll, but his approach to cleaning up public banks` bad debts could be less stringent.
Market benchmark Sensex Monday reversed its two-day falling trend and ended higher by over 120 points and NSE Nifty regained the 8,600-mark, with auto and capital goods stocks leading the recovery on late-buying.
Reserve Bank of India workers and employees have decided to join the September 2 nationwide day-long strike called by central trade unions.
State Bank of Travancore Employees Union (SBTEU) has urged the Centre not to go ahead with the decision to merge SBT and other associate banks with SBI and also wants the RBI and SEBI to intervene in the matter.