Risk appetite improved on the back of a rally in global markets after the US stocks hit a fresh record high yesterday as worries about North Korea and impact of Hurricane Irma on the US faded.
Building up of positions by participants ahead of July IIP data, and retail inflation for August, to be released later in the day, also added to the buoyant sentiment.
The BSE Sensex stayed in the positive terrain through the session and hit a high of 32,172.46 before settling higher by 276.50 points, or 0.87 per cent, at 32,158.66 on continuous pumping of funds by domestic institutional investors (DIIs).
This is the highest closing since August 7 when the closing figure stood at 32,273.67. The index had rallied 220.19 points in the previous three sessions.
Covering up short positions in some counters by speculators fearing buying activity to pick up in the coming session supported the upside, brokers said.
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