Brokers said, the market surged in opening trade as Asian stocks rose with sentiment boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto. Reliance Communications soared in the wake of reports that it might go in for raising capital to the tune of Rs.5000 to Rs.6000 crore. Realty, metal and power stocks were in demand. The market breadth was extremely strong. All 30 stock from the Sensex pack were in the green.
Later, the 30-share BSE Sensex was up 549.53 points or 3.07 per cent at 18791.88. Sensex touched a high of 18,801.56 points in initial trade. The broader CNX S&P Nifty of National Stocks Exchange (NSE) also was up 181.25 points or 3.41 per cent at 5498.50.
The BSE Mid-Cap index was up 2.76 per cent at 7,975.83, while the BSE Small-Cap was up 2.67 per cent at 10,341.38.
India"s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 3.37 per cent to Rs 2627.20.
India"s largest private sector bank by assets ICICI Bank rose 2.94 per cent to Rs 1233.
India"s largest engineering and construction firm by revenue L&T rose 2.24 per cent to Rs 3805.
India"s second largest listed telecom firm by sales Reliance Communications spurted 5.63 per cent to Rs 646 on higher performance reports from the company.
Among the other Sensex gainers, ONGC soared 6 per cent to Rs 1107.50, Wipro gained 4.28 per cent to Rs 456, DLF moved up 4.30 per cent to Rs 850.70, Bharat Heavy Electricals (Bhel) flared up 3.91 per cent to Rs 2146.10 and State Bank of India rose 3.96 per cent to Rs 2270.