Mumbai, Nov. 7: The sensex extended its winning streak to the fourth straight day today and ended 134 points higher at a three-week high of 8,206.83. The rally was fuelled by renewed buying in stocks that have turned more attractive than similar picks elsewhere in Asia.

Foreign institutional investors (FIIs), which have been on the retreat since the second week of last month, also appeared to be making their way back in search of good bargains. Prospects of high growth this fiscal have also buoyed them.

The benchmark 30-share index opened at 8,083.59 and later rallied sharply to an intra-day high of 8,216.42 before ending at 8,206.83 against last Wednesday?s close of 8,072.75. This was a rise of 134.08 points, or 1.66 per cent. The sensex has risen 521.19 points ? 7 per cent in percentage terms ? in the four sessions since October 31.

Foreign funds, having pulled out sizeable funds during October, were dashing to cover their short positions in the futures segment, while stock values are alluring.

Operators and domestic mutual funds joined the bandwagon and made heavy commitments in index heavyweights. Infotech shares led the pack of gainers, their stocks sizzling because investors feel a weak rupee will boost their dollar earnings from overseas clients. Banks also had a rollicking time on the trading floor.

After a slide of 949 points, or 11 per cent, in October, foreign institutional investors appear keen on stocks at their current levels. However, it was the local mutual funds that have been the most aggressive buyers in recent days.

The volume of business on Dalal Street jumped to Rs 3022.33 crore from Rs 2154.05 crore last Wednesday. HDFC Bank, at the centre of a massive block deal this afternoon, clocked the highest turnover at Rs 678.62 crore. It was followed by Reliance (Rs 139.98 crore), Tata Steel (Rs 123.14 crore), SBI (Rs 109.03 crore) and Suzlon Energy (Rs 89.65 crore). Reliance was also the biggest gainer of the day, its stock leaping by Rs 10.00 to Rs 787.10.