Mumbai, Oct. 4: Second quarter results may be a week away, but the celebrations at the stock markets have already begun.

Amidst expectations that India Inc will post yet another round of robust corporate earnings, stock indices today scaled new peaks with the 30-share BSE sensex breaching the 8800 mark for the first time in its history in intra-day trades.

The index ended the day below this level. However, even that was a new closing high and the undertone remains bullish. The sensex has spurted 623 points or 8 per cent in seven days to hit a new high as liquidity continues to abound on account of active support from foreign institutional investors and mutual funds.

The benchmark index opened strong at 8706.70 and breached the 8800 mark in intra-day trading to hit a new high of 8808.83. It closed at 8799.96, a net gain of 102.31 points or 1.18 per cent over the previous close of 8697.65.

It was the IT counters that led the rally. The BSE IT index was the largest percentage gainer as it ended at 3258.30, a rise of 79.96 points or 2.52 per cent. The buying in these counters was led by expectations that some of them would raise the guidance.

Analysts have been optimistic about the prospects of the sector on account of the steady decline in the value of the rupee against the dollar. In the forex market today, the rupee hit a nine-month low of 44.22 against the dollar.

Meanwhile, data released by the Securities and Exchange Board of India (Sebi) showed that FIIs were net sellers of $27.10 million on Monday.

Brokers said this indicated that retail investors are again back in the market with mutual funds also supporting the rally.