India's benchmark index Sensex hit a fresh all-time high, led by a rebound in bank stocks after three sessions of decline while broad dollar weakness helped sentiment for the rupee.

The S&P BSE Sensex rose 1.48 percent to a new record high of 30,301 while the NSE Nifty advanced 1.59 percent to 9,509.

The partially convertible rupee rose 20 paise against the dollar at 64.54 and gaining 0.3 percent from 64.74 at close on Wednesday.

Among the sectoral indices, S&P BSE Capital Goods jumped 3.5 percent while the S&P BSE Bankex climbed 2.8 percent.

The market breadth was skewed in the favour of gainers, with about 7 stocks advancing to every 2 stocks that declined.

India Volatility Index or VIX, a gauge of expected stock-price swings, fell as much as 11%, the most since February 1 as derivatives contracts for the month of May expire.

Next Pit-Stop: 9,600?

“We saw very strong short covering today, especially in banks. It has happened on a expiry day with good volumes. This should propel Nifty higher to 9,600 levels very soon,” said Vijay Chopra, managing director at Enoch Ventures.