MUMBAI: Equity benchmarks continued record breaking spree with the Sensex closing above the 28000-mark for the first time on the back of buying in rate sensitives - banking & financials and autos stocks. However, the market halved its gains in last couple of hours of trade due to weak European cues.

The 30-share BSE Sensex rose 98.84 points to close at 28008.90 and the 50-share NSE Nifty hit 8400 level during the day but could not hold the same, up 20.65 points to end at 8383.30.

The broader markets gained too, the BSE Midcap and Smallcap indices climbed 0.5 percent and 0.2 percent, respectively. Experts believe the market may continue to hit new high in medium term amid intermittent consolidation and correction.

Prolonging bullish tone of the market, Ravi Muthukrishnan, Co-head research, ICICI Securities has a Nifty target of 9,200 in a year’s time. In addition, he expects earnings to grow 16-18 percent in FY15-16. With most earnings meeting street estimates, winter session of Parliament coming in and anticipation of various reforms encircling the Budget, he sees huge upside for the market here on.

According to, Motilal Oswal, CMD ,Motilal Oswal Financial Services, the themes playing in Indian markets currently are the massive balance sheet expansion by Bank of Japan, probable balance sheet expansion by the ECB early next year, collapsing commodity prices due to a strong U.S. dollar and a slowing Chinese economy leading to a slowing inflation and eventual softening interest rates in India.

On the global front, major Asian markets closed higher with the Nikkei hitting a fresh seven-year high (up 0.4 percent) as media report suggested that Prime Minister Shinzo Abe will delay a second sales tax hike to avoiding damaging Japan's economic recovery, and call a snap election to cement his position.

China’s Shanghai and Hong Kong’s Hang Seng gained 0.5-1 percent. However, European markets trimmed losses to trade with marginal losses (at 16:30 hours IST). In early trade, Germany's DAX and France's CAC had declined 1-1.5 percent after the announcement of regulatory penalties for the alleged manipulation of forex markets.