The BSE Sensex hit a fresh record high of 36,740.07 points in opening session on Friday driven by smart gains in Infosys, Coal India and Wipro, despite weak macroeconomic data released on Thursday.
In addition, firm Asian cues and a strengthening rupee against the dollar supported the rally.
Rising for the sixth day, the 30-share index spurted 191.66 points, or 0.52%, to hit a new peak of 36,740.07.
The gauge gained 973.86 points in previous five sessions to close at a record high at 36,548.41 in Thursday.
Sectoral indices, led by IT, metal, teck, oil & gas and consumer durables were trading in the positive zone with up to one per cent gains.
The 50-share NSE Nifty rose 48.15 points, or 0.43%, to 11,071.35.
Shares of Infosys gained over 1.42% ahead of first quarter results, scheduled to be released later in the day.
Among other gainers, Wipro, Coal India, L&T, RIL, Maruti Suzuki, Kotak Bank, TCS, Adani Ports, HDFC Bank, M&M, Tata Motors, IndusInd Bank, Tata Steel and Asian Paints rose up to 3.20%.
Public sector bank stocks, however, took a beating after weak Index of Industrial Production (IIP) and inflation data.
Bank of Baroda, Punjab National Bank, State Bank of India, Federal Bank were to top losers in the BSE Bankex, falling up to 4%.
According to two sets of official data released on Thursday, retail inflation spiked to a five-month high of 5% in June on costlier fuel, despite easing food prices, reducing the possibility of an interest rate cut by the Reserve Bank in its upcoming monetary policy review.
Industrial production slipped to a seven-month low of 3.2% in May due to sluggish performance of manufacturing and power sectors, while retail inflation continued to remain firm in June on costlier fuel.
Continuous buying by domestic institutional investors (DIIs), amid optimism over Q1 earnings and firming trend in other Asian markets following positive leads from Wall Street, buoyed market sentiment here, traders said.
DIIs bought shares worth a net of ₹366.40 crore, while foreign portfolio investors (FPIs) sold shares worth a net of ₹742.63 crore on Thursday, provisional exchange data showed.
Asian stocks rose as China refrained from detailing retaliation plans against threatened US tariff increases.
Hong Kong’s Hang Seng gained 0.58%, Japan’s Nikkei too edged higher 1.47%, while Shanghai Composite Index shed 0.17% in early deals.
The US Dow Jones Industrial Average closed 0.91% higher on Thursday.