Sensex closed with a gain of 118 points after hitting a new high of 22,913. It opened on a positive note at 22,784 against the previous close of 22,758. It made a high of 22,913 and low of 22,780 before closing at 22,876 with a gain of 118 points.
The market sentiment was boosted by data showing that foreign funds remained net buyers in equity to the tune of Rs 163 crore on Tuesday.
Turnover on BSE was down at Rs 2,624 crore against Rs 2,721 crore on Tuesday.
On the NSE, Nifty was up 25 points at 6,841.
Cement stocks witnessed a mixed trend on BSE. Holcim-owned Ambuja Cements hit a 52-week high of Rs 220, but gave up some gains to close at Rs 219. UltraTech Cement, which will be announcing financial results after market hours, fell one per cent to Rs 2,170.
Cairn India dropped three per cent to Rs 352 ahead of its financial results which will be announced after market hours.
M&M gained one per cent after the company's agriculture division signed a joint venture agreement with HZPC of Holland to source best quality potato seed for Indian farmers. The Holland-based company is one of the leading innovative companies in the world in potato breeding, seed potato growing and seed potato trading. While Mahindra will hold 60 per cent stake, the rest will be held by HZPC.
The major gainers were Mangalore Refinery (16%), Future Retail (6%), Motherson Sumi (5%), Prestige Estates (5%), Shriram Trans (4%), Bata India (4%), Bharti Infratel (3%) and Bank of Baroda (3%).
Prominent losers were Financial Tech (-5%), Biocon (-4%), Muthoot Fin (-3%), Cairn India (-3%), DLF (-3%), IRB Infra (-3%), JP Infratech (-3%) and Idea Cellular (-3%).