Sensex rises 145 points, inches towards 17K

The overall market breadth was positive as 1605 gainers led 1176 losers while 81 closed unchanged

Elsewhere, the broader 50-share S&P CNX Nifty closed 0.89 percent or 44.15 points higher at 5020.20.

According to market analysts, the market is riding a confidence wave triggered by hopes of stronger corporate earnings, increased consumer spending and greater foreign fund inflows.

Analysts said promising growth in advance corporate tax payments for the second quarter has fueled expectations of robust second quarter earning by India Inc.

India's corporate advance tax in September quarter is estimated to have grown 14.7 percent on year against a fall of 3.7 percent in the first quarter of FY10 mainly due to strong recovery in banking, auto and consumer durable sectors, the government said on Tuesday.

Foreign fund inflows were pegged at nearly $1.5 billion this month, market data revealed. So far this year, foreign funds have poured in $9.1 billion after pulling out more than $13 billion in 2008, when the index more than halved and it is hoped that inflows would cross $10 billion by December-end.