The BSE benchmark Sensex rose by 173 points to close at all-time high level on buying in metal, oil & gas and power stocks as RBI injected liquidity into the markets while keeping key rates unchanged.

The 30-share barometer spurted by 173.74 points, or 0.70 per cent, to close at record 24,858.59 points, surpassing previous all time high of 24,716.88 reached on May 26.

The 50-share Nifty of the National Stock Exchange also closed at record 7,367.10 points, up by 53.35 points, or 0.72 per cent.

As expected by market participants, RBI kept policy rates and CRR unchanged but cut the statutory liquidity ratio (SLR) for banks by 0.50 per cent.

The central bank, in its second bi-monthly monetary policy statement for 2014-15, unlocked about Rs 40,000 crore of banking fund by reducing SLR to 22.5 per cent.

Metal stocks turned investors' fancy after surveys showed China's factory and services sectors had their best showings in months in May.

Tata Steel rose the most among Sensex scrips by 6.69 per cent, followed by Sesa Sterlite which jumped 6.53 per cent.

Oil major ONGC gained 4.40 per cent and RIL by 1.15 per cent, helping the Sensex to rise for second day in a row.

Among 30-index components, 17 stocks closed with gains.

Banking shares had a mixed trend today with some counters such as SBI, ICICI Bank and Axis Bank succumbing to profit-booking, while HDFC Bank and and Yes Bank closed higher.

The BSE metal index gained the most by rising 5.06 per cent to 13,155.30, followed by realty index by 3.15 per cent to 1,981.79. The PSU index rose by 1.87 per cent to 8,486.21 and Oil and gas index by 1.76 per cent to 11,359.50.

Among global markets, benchmark indices in Hong Kong and Japan up by 0.91 per cent to 0.66 per cent respectively while European markets were down up to 0.33 per cent in early trade.