The Supreme Court#39;s AGR verdict and auto sales numbers eased some pressure in the middle but lack of follow-up buying capped the upside.
Financials rallied after the Federal Reserve#39;s dovish message on the future path of interest rates which meant that interest rates will stay ultra-low for as long as needed to support the economy.
The mood of the market remained exuberant on hopes of a speedy economic recovery and expectations of further fiscal and monetary support.
Top Nifty gainers included names SBI, Bajaj Finance, and Tata Motors.
The SP BSE Bankex was up 2.4 percent, SP BSE Finance 2 percent and SP BSE Telecom index closed with gains of 1.6 percent.
Sectorally, the SP BSE Realty index rose 4 percent, followed by the SP BSE Bankex which was up 2.1 percent, and the SP BSE Finance index closed with gains of 1.8 percent.
The SP BSE midcap index was down more than 1 percent while the smallcap index fell by 0.5 percent.
Sectorally, selling pressure was seen in telecom, healthcare, banks and energy stocks, while some action was seen in capital goods, industrials, consumer durables and metals stocks.
Positive global cues, including the first coronavirus vaccine getting registered in Russia, helped the sentiment in equity markets across the world.
Top Nifty gainers included Tata Motors, MM, LT, and Cipla.
The SP BSE Midcap index rose 1.4 percent and the SP BSE Smallcap index that was up 0.78 percent.
Mild profit booking was seen in telecom (down 0.3 percent), capital goods (down 0.29 percent) and power (down 0.09 percent) stocks.