After two years, the BSE Sensex touched the significant 20,000 mark in early trades on Tuesday.
It had hit the 20,000 mark earlier in 2011.
After gaining 100 points in opening trade it touched 20,007.09.
The 30-share benchmark index later dropped to stand at 19936.90. It stood at 19925.14 at around 2 pm.
The broader 50-share National Stock Exchange (NSE) Nifty index stood at 6033.45 at around 2 pm.
The BSE Sensex rose 1.23 percent on Monday after latest inflation figures boosted hopes of a interest rate cut by the Reserve Bank of India (RBI).
The 30-share benchmark index ended 242.77 points higher at 19,906.41 with 21 of its components closing in the green.
NSE Nifty index ended 1.22 percent or 72.75 points lower at 6,024.05 on Monday.