The key benchmark indices opened strong on positive global cues and due to further fall in crude oil prices. Banking stocks were major gainers after yesterday's steep fall. Reliance Industries gained too. Later, the 30-share BSE Sensex was up 403.14 points, or 2.92 pc, at 14,194.68. The index gained 305.06 points in the early trade to hit at the day's high of 14,096.60. The BSE Mid-Cap index rose by 1.68 pc to 5,580.65 and the BSE Small-Cap index was up by 1.31 pc to 6,920.71.
The market breadth was strong on BSE, with 1,161 shares advancing as compared to 290 that declined. 26 remained unchanged. The broader-based S &P CNX Nifty index of National Stock Exchange was also up by 69.65 points, or 1.66 pc, at 4,259.50.
New York's main contract, light sweet crude for September 2008 delivery, slumped by USD 2.54 to USD 122.19 a barrel on the New York Mercantile Exchange yesterday.
US stocks surged overnight, benefiting from a steep drop in oil prices and an unexpected rise in US consumer confidence after Merrill Lynch's announcement of yet another write-down and capital-raising exercise, raising hopes that the turning point in the year-long credit crisis was close. The Dow Jones Industrial Average rose 266.48 points, or 2.39 per cent, at 11,397.56, the Standard&Poor's 500 Index gained 28.82 points, or 2.33 per cent, at 1,263.19 and the Nasdaq Composite Index rose 55.40 points, or 2.45 per cent, at 2,319.62.
Asian markets were trading higher today as China's Shanghai Composite, Japan's Nikkei, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times and South Korea's Seoul Composite were up by between 0.55 pc to 2.06 pc.
India's largest private sector firm by market capitalization and oil refiner, Reliance Industries, rose 2.01 pc to Rs 2,127.10.
Bank stocks recovered from Tuesday's steep fall caused by further monetary tightening by the Reserve Bank of India at its quarterly policy review. HDFC Bank was up 5.84 pc to Rs 1,089 followed ICICI Bank by 3.77 pc to Rs 630.30 and State Bank of India was up 1.82 pc to Rs 1,345.60 edged higher.
Reliance Infrastructure also rose by 3.73 pc to Rs 942, Tata Steel was up 3.47 pc to Rs 604.60, Jaiprakash Associates moved up 3.42 pc to Rs 156.70, Bharat Heavy Electricals gained 2.82 pc to Rs 1,636, Ranbaxy Laboratories hiked 2.57 pc to Rs 487 were major gainers from Sensex pack, brokers added.