In the two-day post-budget trading, as many as 25 companies in the A group have recorded a rise of around 16 per cent, outperforming the Sensex gain of 9 per cent.

The 125-point rise has helped the Sensex cross the crucial psychological barrier of 3,500 driven by stocks belonging to information technology, pharmaceutical and fast-moving consumer goods (FMCGs). Major pivotals also reported enormous gains on the National Stock Exchange (NSE) with the S&P CNX Nifty crossing the psychological barrier of 1,000 points to close at 1015.80 points. The rally will continue as investors remain overweight on scrips related topharmaceuticals, software and consumer non-durable goods, said analysts. The market sentiment is bullish and likely to continue the trend for a longer period, said fund managers.

``It is an uncommon event with the BSE witnessing a major rally on the day of weekly settlement on the National Stock Exchange (NSE). The 291 points gain in two straight trading sessions after the budget is historical,'' said BSE broker Dilip Bhat.

The Sensex opened the day at 3,447.50 points, touched the day's high of 3,539.62 points, fell below the 3,500-mark to touch the day's low of 3,417.22 points, before closing at 3,523.98, registering a net gain of 124.34 points over the previous close of 3399.63 points.

"Technically, the index has decisively breached the 3,520 levels supported by strong volumes, which gives room for another rally in the new orbit. "If the market closes firmly on Wednesday, we can look forward to another 100-150 points gain to close at 3,520. Today, the market was very strong despite being the last dayon the National Stock Exchange , clearly indicating firm bullishness," said Malay Sameer in fund management at Apple Mutual Fund.

The rally in the market was not across the board and some of the shares mainly representing textile, automobiles and the petrochemicals sector reacted negatively to the Union budget as the sectors did not receive any special benefits.

A leading Calcutta-based punter picked up a little over 2 lakh shares of DSQ Software at Rs 518.75. The punter has been reported buying this chunk from Credit Suisse First Boston through a negotiated deal. The deal was reported on the BSE's negotiated segment on Monday. All tea stocks were up on Monday on exemption of packaged tea from excise duty. Tata Tea went upto Rs 480 to close around Rs 460 and so were Goodricke tea which was up at Rs 115 and Jayshree Tea which closed at Rs 82.83. Pharmaceutical stocks across this sector were on the upper circuit with the government permitting FDI of 74 per cent and a host of other incentives. BurroughsWellcome was the pick-of-the-day. "There are a number of drugs produced by this company which are under price control and once the controls are removed the company will benefit the maximum. Also, this stock is slated to give a net profit of Rs 35 crore compared to Rs 25 crore in the previous period", said analysts. Tobacco giant ITC, Tata tea, Hind Lever and L&T have posted hefty gains. The scrips which witnessed downwards movements included Nocil, Bombay Dyeing, Arvind Mills, Mukand Steels and IPCL.

The total turnover on the BSE reported during the day was Rs 2,135.83 crore which came from trading of 8.96 crore shares in 2,39,268 trades. ITC topped the list of turnover with Rs 366.48 crore, followed by Tata tea Rs 211.02 crore, Pentafour Software Rs 149.76 crore, Reliance Rs 133.14 crore and Satyam Computers Rs 128.12 crore.