The dream run for investors continued unabated on the Indian bourses with the key share market index touching an all-time high for the third consecutive session on large-scale fund buying in heavyweights equities.

Dealers said the stock market opened for the day on a bullish note and kept surging higher for the better part of the trading session on fresh institutional fund inflows on hopes of robust economic growth in the current fiscal year.

The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 7,145.34, representing a gain of 68.82 points or 0.97 percent over its previous session's close.

The key market index bettered a previous all-time closing high of 7,076.52 touched Tuesday. The market index crossed the 7,000-level at the close of the trade for the first time in the Indian capital market history in the previous session.

"The large-scale overseas fund inflows into the trading ring is propelling the index sharply higher for the last few days. The buying in being witnessed across the board," said an analyst with a domestic brokerage firm.

"Although a moderate correction in the valuations of some blue-chip equities in the days ahead will be perfectly in order, no bulk investors are showing any signs of withdrawing from the trading ring," added the analyst.

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

Reliance Industries board last weekend approved the formula for settlement of a lingering ownership row between Reliance Industries chairman Mukesh Ambani and his younger brother Anil Ambani by dividing responsibilities.

Under the settlement formula, Mukesh will get complete control over the oil refining and gas firm Reliance Industries and petrochemicals business Indian Petrochemicals Corp (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 signs of monsoon rains gaining strength in the last few days, after remaining elusive for quite some time, has also boosted the overall market sentiment," added the analyst.

The June-September monsoon rains are very 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 country's population.

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

In the old economy sector, shares of oil refining and petrochemicals major Reliance Industries gained 1.5 percent to touch Rs.655.50 and tobacco major ITC closed with a gain of 2.1 percent at Rs.1,579.25 on sustained buying.

In the technology sector, shares of Tata Consultancy Services, the country's largest software exporter, rose 2.3 percent to Rs.1,333.95 and Hyderabad-based Satyam Computer closed with a gain of nearly one percent at Rs.511.55.