Indian shares climbed for a third session, with a key benchmark closing at a new record high as investors rolled over their positions into the next series.

The S&P BSE Sensex gained 0.4 percent to 29,647 while the NSE Nifty closed 0.3 percent at 9,173. The market breadth was firmly skewed in favour of the buyers. About 3 stocks gained to every 1 stock that declined.

Independent market analyst Lancelot D Cunha said the market continues to run on liquidity. “For the Nifty to break above the 9,200 level, fourth quarter earnings season will be key,” he told BloombergQuint in a phone conversation.

While the market may be looking stretched, he said, a positive performance from India Inc could result in an earnings upgrade. If that happens, he said, then the valuations may not look so expensive.

Meanwhile, he does not expect the rupee to sustain at current levels for an extended period. “Investors can look at pharma stocks as a contrarian bet with a longer-term view,” he said.