The Bombay Stock Exchange (BSE) Sensex surged by nearly three per cent to a 14-month high on Tuesday, following smart gains in technology and blue-chip heavyweight stocks.

“There could be intra-day corrections, but the undercurrent is positive,” a dealer said.

Foreign institutional investors (FIIs) stepped up buying in the last few trading sessions, pumping in a net Rs 1044.0 crore till June 16.

The BSE Sensex gained 94.39 points, or 2.83 per cent, to 3,431.03, its best close since April 19, 2002.

The Sensex has now rallied by about 17 per cent in around seven weeks, after falling to a six-month low in late April.

Meanwhile, at the National Stock Exchange, the S&P CNX Nifty index gained 30.15 points to settle at 1,081.95. A number of blue-chip stocks traded at a new 52-week high.

Technology stocks, which underperformed the recent uptrend, were buoyed by Nasdaq’s 2.46 per cent rise overnight.

Infosys Technologies rose 6.07 per cent to Rs 3,096.50 on foreign-fund buying. HCL Tech climbed 4.79 per cent to Rs 153.45 and Satyam Computer jumped 2.91 per cent to Rs 189.10, following an over 40-point recovery in the tech-heavy Nasdaq on Monday.

Wipro surged by 5.25 per cent to Rs 897.35, off from its intra-day high of Rs 903.90. However, Zee Telefilms shed 1.61 per cent to Rs 92.80, off from day’s high of Rs 92.80.

Fund-based buying interest was witnessed across a number of blue-chips too.

Reliance Industries gained 4.94 per cent to Rs 322.05, off from its new 52-week high of Rs 323.40 on renewed buying interest.

Drugmakers also caught up with the broader market. Dr Reddy’s Labs jumped 6.14 per cent to Rs 1,060.15 on sustained buying interest. Cipla vaulted 2.45 per cent to Rs 756.

Cement stocks were lifted on hopes of consolidation in the fragmented sector which will improve pricing levels and margins.