The Union budget had sent the Sensex skyrocketing on Wednesday and the Nuclear deal between India and the US, provided it more fuel.

The highlight of Thursday was a sharp rise in shares of Defence and Power equipment companies after both the countries sealed a landmark civilian nuclear cooperation pact. The Sensex shot up by a whopping 141 points in the morning session and then came to close with a gain of 61 points. It was a record closing at 10,626.78 points.

“The market is no longer moving on fundamentals. Liquidity is what is driving it up,’ said Bharat Shah, director at Vikram Kenia Securities, as quoted in the Indian Express. The index is up more than 13% this year, driven by foreign funds, which have moved more than $2.4 billion into Indian Shares after a record $10.7 billion inflow in 2005.

The nuclear pact entails assured supply of fuel to Indian reactors. This pact will also give India access to US nuclear technology to meet its soaring energy requirements. This resulted in a lot of optimism in the market and as a result the soaring Sensex; taking it to an all time high, on the two consecutive days, making it truly, a day of celebrations on the Dalal Street.

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