The benchmark Sensex closed slightly below the 39,000-mark -- after hitting an all-time high on the first day of the FY19-20's trade -- over bets of a RBI rate cut and a healthy Chinese factory data, allaying fears of a global slowdown to some extent.

The BSE Sensex hit an all-time high of 39,115.57 along expected lines as the pivotal banking index on the NSE was consistently rising over sustained foreign institutional investments.

The Nifty, however, closed over 100 points short of its all-time high mark.

"Pre-election rally extended to the new financial year with increase in prospects of political stability, rate cut expectation from RBI and improvement in GST collection in March," said Vinod Nair, Head of Research, Geojit Financial Services.

The BSE Sensex closed 198.96 points or 0.51 per cent up at 38,871.87, while the Nifty ended 31.70 points or 0.27 per cent higher at 11,655.60.

Nair added that a better than expected Chinese economic data and surge in US' 10-year yield eased global growth concern which further added impetus to the sentiment. In spite of this, market gave up some gains towards closing due to strong resistance at 11,700 levels.

Experts noted that an expectation of a non-coalition government post the polls have given push to the benchmark indices ever since the poll dates were announced.

"All-time high was on he cards as the force behind the trend looks intact for further gains that may push Nifty to march beyond 12k-mark and Sensex beyond 39,500," Mustafa Nadeem, CEO, Epic Research said.

"We believe there may be some minor profit booking in the short term as the hurdle around 39K and 11,750 levels. Dalal Street is also looking forward to RBI meet this week and expects a rate cut."

Lower inflation, lower interest rate scenario, dovish stance from Fed Reserve and liquidity-driven markets -- all these factors are favouring the current scenario, experts noted.

Tata stocks dominated the gainers' pack on the Sensex. Tata Motors(DVR) and Tata Motors surged over 7 per cent, while the Tata Steel jumped 2.66 per cent.

Other top gainers included were Vedanta, up 2.86 per cent, followed by Bharti Airtel, 2.73 per cent.

The laggards were IndusInd Bank, down 2.22 per cent, followed by Mahindra and Mahindra, Axis Bank, Power Grid and HDFC declining in the range of 1 to 2 per cent.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)