India's benchmark share market index rose Monday over 1 percent on the first trading day in 2005, touching a new all-time high, as flow of overseas funds continued unabated into the domestic stock trading ring.

Dealers said the stock market opened with a wide positive gap and continued to surge higher for better part of the trading session on fresh institutional buying interest.

Mirroring the bullish market sentiment, the stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,679.20, representing a gain of 76.51 points or 1.16 percent over its previous session's close.

The market bettered its previous all-time high of 6,602.69 touched Friday. The key market index is nearly 13 percent high over the year.

Analysts say hopes of impressive financial earnings numbers of blue chip new as well as old economy companies was mainly fuelling the sustained bull-run in the trading ring.

A host of heavyweight companies such as Infosys Technologies, Associated Cement Companies and Wipro will start unveiling their financial results for the October-December quarter from the week ahead.

"Investors are betting on improved earnings performance of heavyweight new as well as old economy companies in the last quarter," said Neeraj Deewan, an equity market analyst with Quantum Securities.

"The general feeling in the trading ring is if the companies' financial performance manages to live up to the street expectations then flow of funds, especially foreign funds, would increase sharply in the days ahead."

From major overseas fund investors to modest salaried folks at home, everyone will continue to make their fortune in the trading ring in the new year as the Indian market emerges as a preferred investment destination, said Deewan.

Massive foreign investments inflows in Asia's fourth-largest economy on hopes of sustained higher economic growth and corporate earnings has taken the benchmark share market index to a level not seen before.

And if analysts and market trackers are to be believed, the bullish trend on the bourses is set to continue in the days ahead making India one of the best performing markets globally.

Foreign funds have collectively put in a record over $8.5 billion in the current calendar year so far into the Indian capital market, up from $6.5 billion worth of inflows in the corresponding period of the previous year.

A slew of overseas fund managers are looking to make their fortune in India as Asia's fourth largest economy sheds its decades of casino like stock trading practices in favour of world-class regulatory systems.

In the old economy sector, shares of Hero Honda Motors, India's largest motorcycle maker, gained 5.1 percent to touch Rs.600.40 after the company announced strong sales growth last month.

The company sold 230,751 motorcycles in December 2004, up 44 percent from 160,191 units in the same month in 2003.

Shares of Maruti Udyog, the country's largest carmaker, rose 1.8 percent to Rs.469.40 and two-and-three wheeler maker Bajaj Auto closed with a gain of 1.01 percent at Rs.1,142.85.

Other major gainers in the sector included Mahindra and Mahindra, Reliance Industries, public sector Oil and Natural Gas Corp, Hindustan Lever, State Bank of India, and tobacco giant ITC.