New Delhi - Indian share markets gained by over 3 per cent Thursday tailing a global rally.

The 30-share Sensex of the Bombay Stock Exchange crossed the psychological 10,000 level to close at 10003.10 points, about 3.47 per cent above Wednesday's close.

The broader S&P CNX Nifty closed at 3082.25, about 3.28 per cent above its previous close.

The markets gained for the fourth successive day as inflation figures of 0.27 per cent for the week ended March 14 raised expectations of rate cuts and further liquidity flow into the market.

Buying by foreign firms and rallies in Asian markets also boosted the bullish sentiments.

There was buying across sectors, especially in capital goods, metal, power, banking, technology and auto.

Realty, however, bucked the trend falling by over 4 per cent.

With Thursday's rally, the Sensex has recovered 29 per cent from a 12-month low of 7,697 in October 2008.

"Though the markets rallied today on good volumes, it remains to be seen whether this rally will continue. It may be just a pre- election rally that may taper off soon," Kaushal Shah, deputy head of research, LKP Shares, said on NDTV television channel.

General elections are scheduled to be held in India between April 16 to May 13. (dpa)