The rally in global markets was triggered by an unexpected rise in US retail sales in January 2008 that helped ease recession worries in the world's largest economy. Capital goods and power stocks were in demand. Oil and gas stocks perked up on reports that government has raised retail fuel prices to ease losses at state-run oil marketing firms. 29 out of 30 stocks from the Sensex pack gained. The market breadth was strong.
The rally was led by realty, power, metal and banking stocks.
Asian markets ended strong following another day of gains on Wall Street. Broader markets also ended higher in line with frontline counters. BSE midcap and smallcap index closed higher inline with the fronliners. Market breadth was also very encouraging but the volumes were a disappointment.
European markets, which opened after Indian market, were trading firm.
The 30-share BSE Sensex rose 817.49 points or 4.82 per cent to close at 17,766.63. Sensex gained 888.94 points at the day's high of 17,838.08, at the fag end of the trade. It was up 316.05 points at the day's low of 17,265.19, hit in opening trade.
The broader CNX S&P Nifty index of NSE also went up by 272.55 points or 5.53 pc at 5202.00 at the end of the session.
The heavyweight Sensex counters ended near the day's high on the renewed speculative support seen in scrips across sectors.
India's biggest power equipment maker in terms of revenue, Bharat Heavy Electricals surged 12.68 pc to Rs 2233 after it won a Rs 200-crore contract for supplying oil field equipment to Oil&Natural Gas Corporation.
Reliance Industries rose 5.27 pc at Rs 2512.70 along with ICICI Bank, which jumped up by 5.92 pc to Rs 1164.35.
Among the other Sensex gainers, Reliance Energy soared by 10.20 pc to Rs 1717 followed by Hindalco Industries by 9.10 pc to Rs 163.60, Reliance Communication by 9.67 pc to Rs 612, ONGC by 9.05 pc to Rs 1029.80 and Larsen&Toubro by 7.43 pc to Rs 3520.
Anil Dhirubhai Ambani Group firm Reliance Power rose by 5.4 pc to Rs 370.20 on volume of 78.80 lakh shares on the BSE. On Monday, the stock had debuted at Rs 547.80, a premium of Rs 21.73 pc over the IPO price of Rs 450.
Essar Oil was up by 15.40 pc to Rs 212.50. Similarly, Reliance Petroleum flared hp by 14.08 pc to Rs 165.15, Steel Authority of India moved up by 7.07 pc to Rs 212.75, Centurion Bank of Punjab rose by 2.49 pc to Rs 49.40.
As per provisional data, FIIs purchased shares worth Rs 9.40 crore yesterday. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 23.59 crore on the same day.
FIIs were net buyers to the tune of Rs 1,701.55 crore in the futures&options segment yesterday. They were net buyers of index futures to the tune of Rs 1,083.99 crore and bought index options worth Rs 18.18 crore. They were net buyers of stock futures to the tune of Rs 603.59 crore and sold stock options worth Rs 4.21 crore, brokers added.