The indices advanced despite shares of top-weight ITC ending five per cent lower, making 123-point negative contribution to the index. ITC’s rival Hindustan Unilever gained five per cent and was the biggest gainer on the Sensex, followed by Bharti Airtel (four per cent) and HDFC (2.7 per cent).

Gains were also supported as global investors remained positive that the European Central Bank (ECB) would announce a new round of quantitative easing (QE) to revive economic growth.

Foreign institutional investors (FIIs) bought shares worth Rs 2,065 crore on Wednesday, provisional data showed. They had invested nearly Rs 1,300 crore a day earlier after the International Monetary Fund (IMF) predicted the Indian economy will be the fastest-growing major global economy, outpacing China, by 2016-17.

The Indian market has ended with gains on all trading days since January 15, when the Reserve Bank of India (RBI) unexpectedly eased key policy rates by 25 basis points.

“Declining bond yields suggest the ECB might announce fresh QE. It will come when US QE is likely to get negative,” said Vinod Nair, head-fundamental research, Geojit BNP Paribas Financial Services, adding Indian investors were eyeing new reforms and Budget announcements.

Market players are hoping the government would take bold initiatives to unleash the true potential of the economy.

“For India, real GDP growth is projected to strengthen to 5.4 per cent in 2014 and 6.4 per cent in 2015, assuming that government efforts to revive investment growth succeed and export growth strengthens after the recent rupee depreciation,” the IMF in its World Economic Outlook said on Tuesday.

After gaining 30 per cent in 2014, most brokerages are expecting the Sensex to rise 20 per cent this calendar.