The benchmark index started the session on a positive note and gradually accumulated gains on sustained buying interest throughout the day, triggered by hopes that UPA government at the centre would survive, after the reported possibility of support from Samajwadi Party, stock brokers opined. Sensex had touched a day's high of 13,509.74, gained 415.63 points, before closing with a gain of 2.75 per cent from its previous close of 13,094.11. However, the Sensex once dropped 66.32 points at the day's low of 13,027.79, hit in early trade.
Similarly, the broader based S &P CNX Nifty index of National Stock Exchange climbed up 90.25 points, or 2.30 per cent, to close at 4016.00.
Market bounced back as investors showed their interest for buying in blue chip pivotals at lower levels, brokers said. Index blue chips also firmed up while Mid-cap and small-cap stocks recovered from negative zone to close with a gain of 2-2.5 per cent.
Realty, capital goods and power counters, which had been battered badly in the previous sessions, made a recovery.
The market witnessed a healthy gain despite most of the Asian market still in negative zone. However, wholesale price index- based inflation rose 11.63 per cent in the week ended June 22, above the previous week's 11.42 per cent, government data released today showed.
The market breadth was strong on BSE, with 1688 advancing, while 912 lost and 74 stocks remained unchanged. BSE clocked a turnover of Rs 5604 crore as against Rs 5,645.90 crore in the previous session.
All the sectoral indices on BSE, except metal, turned positive today. Realty index surged 7.8 pc, Capital Goods gained 6.79 pc, Power moved up 6.10, Consumers Durable climbed 3.15pc and Bankex gained 3.06 pc.
Index frontliners, Reliance Communications (RCom) zoomed 12.5pc to Rs 438, Jaiprakash Associates surged 10.7pc to Rs 153, DLF was up 8.5pc to Rs 415 and BHEL went up 7.5pc to Rs 1,500, followed by Reliance Infrastructure up 7pc to Rs 774, Lasren &Toubro gained 6.5pc at Rs 2,380 and HDFC moved up over 6 pc to Rs 2,055.
India's largest lender State Bank of India gained about 2.5 pc to Rs 1,128, while second largest lender ICICI Bank was up by 4.7 pc to Rs 538.
However, Tata Steel shed 2.6pc at Rs 640, Cipla slipped 1.7pc to Rs 208 and TCS declined 1.3 pc to Rs 844.