The Nifty index of National Stock Exchange also moved above 4600 mark and closed firm at 4653.00. The Sensex and Nifty indices have shot up by 507.28 and 135.90 points in the last two days. The market sentiment was boosted by reports of higher advance tax payment by top Indian firms as first instalment for June 15 2008, reports of good monsoon in the initial phase and easing of oil prices from a record high.
Many companies have recorded a higher advance tax outgo in the first instalment for June 15, compared to the corresponding period last year. The finance minister expects direct tax collection for the current year to cross Rs 4 lakh crore.
Solid gains in banking and realty shares helped the market end on a firm note with the barometer index BSE Sensex settling near the day's high. Firm European markets helped the market extend gains in the second half of the trading session. All the sectoral indices on BSE were in green, indicating that the rally was quite broad-based today.
Maruti Suzuki India, India's biggest car maker in terms of market share, spurted in late trade.
European markets edged higher as reports suggested that the expectations of a US rate hike have been overplayed. Key indices in UK, France and Germany were up by 0.87 pc to 1.57 pc.
The 30-share BSE Sensex rose by 301.08 points or 1.96 pc at 15,696.90 points at the end of the session. At the day's high of 15,732.75, Sensex gained 336.93 points at the fag end of the trading session. The index shed 37.84 points at the day's low of 15,357.98, hit in early trade The broader based S&P CNX Nifty of NSE rose by 80.50 and ended in green at 4653 points. It resumed flat at 4572.50, later it recorded the day's high at 4664.05 and a low at 4561.75 points.
Markets had opened on a quiet note and remained flat for first one hour of trade. But after that bulls came in limelight and supported the markets for rest of the day.
Top traded counters on the bourses were Reliance Industries, Larsen&Toubro, Ranbaxy Labs, ICICI Bank and Reliance Petroleum.
Total turnover traded by the markets stood at Rs 58912.06 crore.
This includes Rs 10974.53 crore from NSE Cash segment, Rs 42624.38 crore from NSE F&O and the balance Rs 5313.15 crore from BSE Cash segment.
Marketmen expected to trade strong as bank, realty, stocks are trading with good gains. Buying interest is also seen in oil&gas, capital goods, consumer durable and power stocks. The BSE midcap and smallcap indices are up by 100.46 points and 112.14 points respectively.
Similarly, BSE other top indices such as BSE BANKEX and CG indices also shot up by 311.54 points and 260.07 points respectively, followed by REALTY index by 228.32 points,OILS&GAS index by 225.73 points, METAL index by 142.09 points, AUTO index by 50.89 points, POWER, FMCG and IT indices by 35.20, 28.20 and 26.85 points respectively.
The market breadth was strong on BSE with 1792 shares advancing as compared to 886 that declined. 85 remained unchanged.
BSE clocked a turnover of Rs 5312 crore as against Rs 4,537.92 on Monday.