Early on D-Street | Key resistance for Nifty at 12,034

The final tally on D-Street – the S&P BSE Sensex rose 181 points to 40,651 while the Nifty50 closed 59 points higher at 11,999 on Wednesday.

Sectorally, the action was seen in energy, healthcare, oil & gas, and capital goods index while profit-taking was seen in realty, consumer durables, telecom, and power stocks.

What led to the rally? Experts are of the view that favourable global cues backed by benign oil prices, divestment buzz, better-than-expected Q2 results from India Inc. and a strong rally in Reliance Industries which holds a considerable weight in the index are some of the factors which fuelled the rally on D-Street.

"BSE Sensex hit a record high on favourable global markets backed by benign oil prices as FII flows turned positive post the corporate tax cuts and expected privatisation of PSU units," S Ranganathan, Head of Research at LKP Securities told Moneycontrol.

"Second Quarter Earnings were rescued by corporate tax cuts and with Fund Houses piling on to large-cap index components we have seen record highs today led by RIL which is rapidly gaining market share in its Telecom vertical," he said.