Banking, finance and pharma counters hogged the limelight, while cement and FMCG stocks succumbed to profit-taking.
The ongoing quarterly earnings season would also be in focus directing the movement of indices.
Reliance shares rose 1.7% after Indian stock exchanges on Wednesday gave the go-ahead for Future Group's $3.4 billion deal to sell its retail assets.
The companies are expecting to benefit from an equity market, which is flush with liquidity and has seen a sharp increase in new retail investors.
On the earnings front, the release of Q3FY21 results will commence from the next week. Investors expect robust earning figures in the back of healthy festive season sales and opening up of the economy.
Breaching the 45,000-mark for the first time, the 30-share BSE Sensex surged 446.90 points or 1 per cent to finish at 45,079.55. Intra-day, it touched a lifetime peak of 45,148.28.
SBI on Wednesday reported an upbeat September-quarter profit and said it expected stronger annual credit growth, sending its shares 4.35% higher and lifting the Nifty banking index by 1.6%.
The changed situations call for a change in the investment philosophy. Investments play a major part in global finance.
Always expect volatility and losses in markets in the short term. Do not borrow to invest in stock markets. Invest long term.
SP Group, which owns 18.37 per cent in Tata Sons, has said TSPL moved the top court to block its plan to pledge shares for raising funds and that reeked of vindictiveness and oppression of minority shareholder rights.