The BSE healthcare and FMCG indices rose 1.2 per cent each.
Sentiment was also buoyed as monsoon progress raised expectation that the Reserve Bank of India (RBI) will cut rates in October than in 2016, as anticipated earlier after delivering three cuts of 25 basis points each in 2015 so far.
Asian shares were near to eking out a sixth session of gains as investors strove to stay optimistic on the chance of a Greek debt deal, while the dollar held firm as the prospect of US rate rises swung back into view.
"Monsoon will aid rural demand and in turn consumption," said G Chokkalingam, founder of Equinomics, a Mumbai-based research and fund advisory firm.
The Sensex gained 0.38 per cent, heading for its longest gaining streak since the nine-session rally to September 3, while the 50-share Nifty rose 0.33 per cent.
June-quarter earnings results and the passage of land acquisition and tax reforms in the coming parliament session would also be key for sustaining the rally.
Stocks considered safe led gains. Cigarette maker ITC advanced 0.8 per cent and Hindustan Unilever rose 3.1 per cent.
Exporters rose after reasonably good US data, comments from Federal Reserve Governor Jerome Powell, who said he was prepared to raise interest rates twice this year, boosted the dollar overnight.
Sun Pharmaceutical Industries rose 2.1 per cent, while Lupin gained 2 per cent.
Among software exporters, HCL Technologies rose 1.5 per cent and Wipro gained 1.2 per cent.
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