That apart, the Nifty metal index surged over 3 per cent on Tuesday. The substantial easing of trade tension had led the US markets to touch record highs while pumping Asian markets too.
Jindal Steel advanced over 7 per cent. Tata Steel, SAIL and Vedanta gained over 4 to 5 per cent each.
The Sensex touched a high of 41,299.27 and at 12.59 p.m. was trading at 41,297.39 higher by 358.67. The border Nifty was also just shy of its record high level at 12,152.95 points, up 99 points.
Despite the rising inflation and weak growth, the markets have been marching forward owing to the strong inflow of FII and favourable interest rate by global central banks.
On Monday too, the Sensex surged to lifetime highs but fell to close in the red after the wholesale inflation figures rose for the first time in six months, adding to the weak growth rate and high consumer inflation.
Foreign Portfolio Investors pumped in Rs 728.13 crore worth of scrips on Moday while its domestic counterpart sold stocks worth Rs 796.38 crore.
Global factors are likely to be more supportive in the near term and market anticipates a better economic growth in coming years which is giving support in every consolidation, said Vinod Nair, Head of Research at Geojit Financial Services.
Nair added that investors are also keenly waiting for the upcoming GST council meet to get any cues on overcoming revenue shortfall.
( With inputs from IANS )