At 9.50 AM, the Sensex is trading at 24,986 levels down by 38 points and Nifty is trading at 7,449 levels lower by 38 points.

Indices continue to scale fresh highs on account of strong foreign inflows and budget optimism.

Hitting a new peak for the second straight session, the 30-share barometer surged 83.04 points, or 0.32 per cent, to trade at 25,924.25, surpassing its previous intra-day high of 25,864.53 reached yesterday.

By 10:50, the Sensex was higher by 90 points at 25,504 mark and the Nifty gained by 22 points at 7,634 levels.

Asian stocks firmed up ahead of a packed week of economic data that will test investor hopes for a pick-up in the US as well as the global economy.

The market will take a close look at the U.S. non-farm payroll data, due on July 3, which will direct the short-term trend in global equities.

Shares in Ranbaxy Laboratories Ltd are up 4.7 percent and Sun Pharmaceutical Industries gains 3.65 percent after the U.S. Food and Drug Administration approved the company's generic version of Novartis AG's blood pressure drug Diovan.

The market will remain volatile today in view of the last day of futures & options (F&O) segment for June contract.

The index rose more than 1% between 3.20 pm and 3.26 pm IST, ending with gains of 0.76%. TVS Motors (2.93%), Hero Motocorp (1.01%), Bajaj Auto (2.63%) and Maruti Suzuki (2.56%) were among the major gainers in the auto space, on a day the benchmark Sensex ended slid 0.22% at 25,313.74 points.