Sensex heads for 39K

Market benchmark BSE Sensex rose by 202 points to close at a fresh record high while the NSE Nifty ended above the 11,700-mark for the first time led by gains in RIL, HDFC twins and Maruti.

Continuing its recordbreaking run for the second session, the BSE Sensex rose by 202.52 points or 0.52 per cent to close at a new alltime high of 38,896.63 after global markets rejoiced a trade deal between the US and Mexico.

The 50-issue Nifty also advanced 46.55 points or 0.40 per cent to close at a record high of 11,738.50. It also hit a record intra-day high of 11,760.20, surpassing its previous record of 11,700.95.

"Buoyed global sentiment on account of US-Mexico trade agreement elevated domestic indices to new highs," said Vinod Nair, Head of Research, Geojit Financial Services.

Asian and European stock markets climbed following another Wall Street record after the trade deal between the US and Mexico.

Covering-up of short positions by participants ahead of August month expiry in the derivatives segment on Thursday too supported the bull-run.

Analysts expect domestic benchmark indices to continue gain on Wednesday tracking global markets and on strong buying momentum of domestic institutional investors.

"Liquidity is driving the markets due to buying from domestic institutional investors," said Amit Kumar Gupta, a portfolio manager at Adroit Financial Services.

Expectations of accelerated economic growth and better corporate earnings in Jul-Sep and Oct-Dec, due to the festival season, is seen aiding sentiment.