India's key share market index finished over one percent higher Tuesday, touching a record high for the second consecutive session on sustained buying interest in shares of Reliance firms and select heavyweights.

Mirroring the bullish investors' sentiment, the stock market benchmark 30-share Bombay Stock Exchange sensitive index or Sensex closed at 7,076.52, netting a gain of 91.97 points or 1.32 percent over its previous session's close.

The key market index thus bettered the previous all-time closing high of 6,984.55 touched Monday. Also on Monday, the index crossed the 7,000-level for the first time in the Indian capital market's history.

Experts said the buying sentiment inside the trading ring had been boosted by the resolution of a seven-month ownership feud in the powerful Reliance business group and the progress of monsoon rains in different parts of the country.

The Reliance Industries board last weekend 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 settlement, 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.

"The dream run on the bourses continued for the second consecutive session mainly on the back of sustained buying in Reliance group shares on the rift resolution," said Deepak Shah, an analyst with brokerage firm Pranav Securities.

"The market sentiment has also been boosted by signs of monsoon rains gaining strength after remaining elusive in the last few weeks. The monsoon is likely to be normal this year," he said.

The June-September monsoon rains are crucial for Indian agriculture, which accounts for one-fourth of the country's total economic output and provides employment to nearly 70 percent of the population.

India's economy grew by 6.9 percent in the fiscal year ended March 31, 2005 on top of a higher increase of 8.5 percent in the previous year on increased agricultural production.

In the old economy sector, shares of Reliance Industries gained 2.5 percent to touch Rs.645.90 on sustained institutional buying interest after the unveiling of the settlement blueprint Saturday.

Gujarat Ambuja Cements rose 6.3 percent to Rs.63 and consumer good maker Hindustan Lever closed with a gain of 3.6 percent at Rs.153.50 on fresh buying interest at lower levels.

In the technology sector, shares of i-flex solutions ended 1.9 percent higher at Rs.750.10 after the company announced acquisition of a software product.

One of India's leading mid-size software solutions companies, i-flex solutions said Tuesday it would acquire the intellectual property rights of global financial services consultancy Capco's operational risk tool suite ORTOS.

The alliance will leverage joint competencies to help financial institutions better measure and manage their enterprise risk, said a statement issued to the Bombay Stock Exchange.