The S&P BSE Sensex and NSE Nifty 50 indexes staged sharp recovery from intraday lows in the last hour of trade led by strong buying interest in information technology, auto, financial services, pharma and banking stocks. The benchmarks touched record highs for the third straight session wherein the Sensex rose as much as 431 points to hit a new record high of 43,708.47 and Nifty 50 index made a new all-time high of 12,769.75. However, some selling pressure in Reliance Industries and IndusInd Bank led to some correction in the noon deals.
As of 2:48 pm, the Sensex was up 333 points or 0.77 per cent to 43,611.02 and Nifty advanced 116 points to 12,747.
Analysts have indicated that after a sharp up move in the equities, a big correction is not on the cards.
"The markets may not see big correction from here and in the medium to long term we see markets doing well," said Santosh Kumar Singh, head of research at Motilal Oswal Asset Management Company.
Nine of 11 sector gauges compiled by the National Stock Exchange were trading higher led by Nifty Pharma index's 3.72 per cent gain. IT, metal, financial services and FMCG shares were also witnessing buying interest.
On the flipside, PSU bank and media shares were witnessing selling pressure.
Tata Steel was top Nifty gainer, the stock rose over 6 per cent to Rs 470. Hindalco, Dr Reddy's Labs, ITC, CIpla, Bajaj Finserv, Hero MotoCorp, Axis Bank, Eicher Motors, Sun Pharma and BPCL also rose between 3-5 per cent.
On the flipside, IndusInd Bank, Reliance Industries, Titan, Asian Paints, Britannia Industries and Hindustan Unilever were among the notable losers.