Benchmark BSE Sensex rose by 393 points on Wednesday following gains in IT, energy and auto stocks amid strong global cues on hopes of fresh stimulus measures by the incoming US administration.

The 30-share Sensex advanced by 393.83 or 0.80 per cent to close at its fresh record of 49,792.12.

The broader NSE Nifty jumped 123.55 points or 0.85 per cent to settle at a lifetime high of 14,644.70.

World stocks advanced on Wednesday after US Treasury Secretary nominee Janet Yellen called for a hefty stimulus to protect the US economy.

President-elect Joe Biden, who will be sworn into office on Wednesday. has laid out a USD 1.9 trillion stimulus package proposal to boost the economy.

Among Sensex stocks, Maruti rose the most by 2.75 per cent, followed by Tech Mahindra (2.67 per cent), Mahindra & Mahindra (1.98 per cent) and Asian Paints (1.98 per cent).

Gains in Reliance, TCS, Infosys, HCL Tech, HDFC and ICICI Bank also helped the barometer extend its rally for a second day.

Among losers, Power Grid dropped 1.75 per cent and NTPC by 1.35 per cent.

Asian shares were mostly higher ahead of Joe Biden's inauguration as US president. Australia's S&P/ASX 200 rose 0.4 per cent and South Korea's Kospi by 0.6 per cent while Hong Kong's Hang Seng added 0.7 per cent.

Japanese market, however, dropped 0.4 per cent due to fresh COVID-19 concerns.