Wiping off the day’s initial losses, the key indices of the Indian equity markets closed Tuesday’s trade at new highs, with the barometer 30-scrip Sensitive Index (Sensex) closing above the 34,000-level for the first time.

According to market observers, healthy buying in metals, healthcare and auto stocks among others aided in the upward rally of the key indices.

The BSE Sensex closed at 34,010.61 points — up 70.31 points or 0.21 per cent from Friday’s closing high of 33,940.30 points. It scaled a fresh high of 34,061.88 points on an intra-day basis.

The BSE market breadth was bullish as 1,662 stocks advanced as compared to 1,085 declines.

On the National Stock Exchange, the wider Nifty50 closed higher by 38.50 points or 0.37 per cent at a fresh level of 10,531.50 points. The Nifty touched a new high of 10,545.45 points on an intra-day basis.

“Markets surged higher in late afternoon session today, after remaining in a narrow range movement for better part of today’s session. The Nifty closed up 0.37 per cent at 10,532 after making a new all time high at 10,545,” Deepak Jasani, Head, Retail Research, HDFC Securities, told IANS.

“In the process, the Sensex also crossed the 34,000 mark and closed above it. Technically, with the Nifty surging higher after few sessions of sideways movement, the underlying short term uptrend remains up,” he added.

On the currency front, the Indian rupee weakened by three paise to close at 64.08 against the US dollar from its Friday’s close at 64.05.

Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 44.07 crore while domestic institutional investors purchased stocks valued at Rs 544.50 crore.

Vinod Nair, Head of Research, Geojit Financial Services, said: “Market started off range bound as investor’s participation remain low due to holiday season while stock specific action in telecom, pharma and metal towards close raised the indices to a new high.”

“Mid and small-cap outperformed on expectation of improvement in rural demand supported by continued government reforms,” he added.

The broader market indices also touched fresh intra-day highs. On a closing basis, the S&P BSE mid-cap index was up by 0.76 per cent and the small-cap index by 0.64 per cent.

In another development, shares of Reliance Communications (RCOM) zoomed and closed almost 30 per cent higher at Rs 21.33 per share after Reliance Group’s Chairman Anil Ambani on Tuesday announced plans to reduce the company’s debt by Rs 25,000 crore to Rs 6,000 crore.

“Traders got excited based on the newsflow about RCOM debt settlement. Long term investors will await details about how this is going to be achieved and what are the sacrifices that will have to be made by different stakeholders,” Jasani told IANS.

All the 19 sub-indices of the BSE closed in the green, led by the S&P BSE metal index which rose by 178.63 points.

Metal index was followed by healthcare (up 124.53 points), capital goods (up 86.62 points) and auto (up 69.70 points) indices.

Major Sensex gainers on Tuesday were: Bharti Airtel, up 2.59 per cent at Rs 542.80; Sun Pharma, up 1.88 per cent at Rs 540.45; Yes Bank, up 1.74 per cent at Rs 315.45; Tata Steel, up 1.52 per cent at Rs 721.40; and Dr. Reddy’s Lab, up 1.17 per cent at Rs 2,360.25.

Major Sensex losers were: NTPC, down 1.14 per cent at Rs 177.75; State Bank of India, down 0.94 per cent at Rs 316.85; Coal India, down 0.88 per cent at Rs 263.65; Mahindra and Mahindra, down 0.64 per cent at Rs 741.30; and HDFC Bank, down 0.62 per cent at Rs 1,865.70.