A cut in interest rates in US on Wednesday propelled India’s stock market benchmark Sensex past the 16,000-point milestone with the biggest one-day gain of 654 points.

Investors sentiment received a boost after the Federal Reserve on Tuesday cut benchmark lending rates by 0.50 per cent to ease credit market woes - a development market watchers see as good for emerging markets like India. The Bombay Stock Exchange (BSE) 30-share barometer opened above its previous all-time intra-day high of 15,868.85, logged on August 24, and rallied to a new peak of 16,335.30.

It finally ended at 16,322.75 from Tuesday’s close of 15,669.12, the biggest point-wise gain of 653.63 points or 4.17 per cent. It took 52 trading days to travel from 15K to 16K. Previously, the Sensex had risen by a record 615.62 points on June 15, 2006.

Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) also touched a life-time intra-trade high of 4,739.00.

Later, it ended at a new closing peak of 4,732.35, a smart rise of 186.15 points or 4.09 per cent over the previous close of 4,546.20.