India's benchmark share market index ended over one percent higher Monday, touching an all-time high on massive buying in Reliance group stocks as investors cheered the settlement of an ownership feud.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,984.55, representing a gain of 78.03 points or 1.13 percent over its previous session's close.

The key market index bettered the previous all-time closing high of 6,954.86 touched March 9, 2005. In intra-day trade, the index briefly breached the 7,000-mark for the first time in the Indian capital market's history.

Dealers said the stock market opened for the day on a positive note and surged higher in early trade as institutional investors rushed to pick up shares of all Reliance group companies.

After witnessing range-bound trade in early trade on little investor interest on mid-cap stocks, the benchmark index staged a smart rally on large-scale buying in index heavyweights.

"The stock market is reacting very positively to the settlement of the Reliance family row. The rally is on expected lines," said Deepak Shah, a senior analyst with brokerage firm Pranav Securities.

"Many new retail and overseas fund investors are flocking to the trading ring now. The Reliance settlement has ended months of uncertainty on the bourses," Shah told.

"Reliance stocks had under-performed in the broad market in the past few months due to the differences between the Ambani brothers. After this settlement, Reliance group shares will lead the market rally."

The Reliance Industries board has approved the formula for settling a lingering ownership row between Reliance Industries chairman Mukesh Ambani and his younger brother Anil Ambani by dividing responsibilities.

Under the formula, Mukesh will get complete control over oil refining and gas firm Reliance Industries and Indian Petrochemicals Corporation Ltd. (IPCL).

The younger Ambani, on the other hand, will manage power utility Reliance Energy, finance firm Reliance Capital and telecom services major Reliance Infocomm.

"Investors were expecting some kind of settlement for quite some time now but no one was sure when this would finally come," said Ambareesh Baliga, vice president of Karvy Stock Broking Ltd.

Shares of Reliance Industries gained 4.7 percent to touch a new high of Rs.630.40 and Indian Petrochemicals Corporation closed with a gain of 3.9 percent at Rs.167.60.

Reliance Energy ended a whopping 11.3 percent higher at Rs.658.25 and Reliance Capital soared 25 percent to Rs.294.20.

Anil Ambani said Sunday he would invest Rs.30 billion ($680 million) in energy and financial services and look at infrastructure projects.

He said an investment of Rs.10 billion ($229 million) would be made in power utility Reliance Energy in view of the strong growth prospects in the sector.

In the technology sector, shares of Infosys Technologies, the country's second largest software exporter, gained 3.8 percent to touch Rs.2,375.50 and Hyderabad-based Satyam Computer ended 3.5 percent higher at Rs.503.50.