After touching an intraday high of 17,576.78 and 5,260.50, respectively, BSE Sensex closed at 17,490.08, up 106.90 points or 0.61pc and the Nifty rose 33.80 points or 0.65pc to settle at 5,231.90,
Buying were seen in banking, technology, metal on rise in CRB index, select capital goods, power and pharma stocks.
However, markets lost the early gains due to selling in Maruti, HUL, Tata Power, Tata Motors, Unitech, M&M, BPCL, Suzlon, Reliance Power, Ambuja Cement and Reliance Capita.
The most active shares on the bourses were ARSS Infra, Texmo Pipes, Hindustan Copper, STC India, Tata Steel, Reliance Industries, ICICI Bank and Tata Motors.
Top percentage gainers: Rossell Tea and Coromandel Engg were locked at 20pc upper circuit.
In the midcap space, STC India shot up 18.48%. Andrew Yule, HMT, Amtek Auto and Engineers India (going to consider bonus and stock split on March 23) went up 5 to 11pc, while Shriram City, MVL, Bannariamman, Coromandel International and Shree Renuka lost 3.6 to 6pc.
In the smallcap space, Piramal Life rose 19.98pc. Panyam Cements, Dredging Corporation, Murli and Zylog Systems went up 8.5-10.6pc.
The global markets was supported by Fed's interest rate decision. The Federal Reserve held benchmark rates near zero on Tuesday and renewed its pledge to keep them exceptionally low for an extended period. The US markets closed 0.4-0.8pc higher on Mar 16.
Among the Asian markets, Shanghai, Kospi and Taiwan Weigthed rose 2pc each today. Jakarta gained 3.25pc and Hang Seng rose 1.7pc. Nikkei gained 1.2pc and Straits Times went up 0.8pc.
At the time of closing of Indian equities, European markets were trading 0.5pc higher and US index futures gained 0.2pc.
Sensex above 17000; TCS, ONGC gain
Markets were trading higher supported by Asian markets, which ralllied further and were trading at 2-month high. The Federal Reserve's decision on interest rates issued gain for US markets on Mar 16.
At 1:30 pm, Sensex was trading at 17558, up 175 points and the Nifty was at 5253, up 55 points.
All sectors like pharma, metal, capital goods, technology, telecom, banking and oil & gas exploration companies' shares were northbound, barring HUL, Maruti, BPCL, Tata Power, Cairn and M&M stocks.
Postive contributors to the markets were ICICI Bank, TCS, SAIL, ONGC, Bharti, L&T, Reliance Industries, ITC, Wipro, SBI, HDFC and Tata Steel.
The most active shares on the bourses were ARSS Infra, MSK Projects, Texmo Pipes, Reliance Industries, Zylog Systems, ICICI Bank, Tata Steel and Tata Motors.
Among the Asian markets, Shanghai, Kospi and Taiwan Weighted shot up 2pc each. Jakarta gained 2.8pc, Hang Seng moved up 1.7pc, Nikkei gained 1% and Straits Times went up 0.5pc.
Nifty northbound; Tata Motors, RIL up
Buying interest was seen across all sectors except for HUL, Tata Motors, M&M, HDFC Bank, BPCL and Ranbaxy Labs stocks. The leading sectors in the trade were Metal, telecom, power, oil & gas exploration, realty, select capital goods and technology.
At 10:35 am, Sensex was trading at 17557, up 174 points and the Nifty was at 5257, up 55 points.
The most active shares on the bourses were MSK Projects, ARSS Infrastructure, Hindustan Copper, Jai Corp, Tata Steel, Reliance Industries, ICICI Bank and Educomp Solutions.
MSK Project gained 4 pc, on the back of a block deal of 31 lakh shares on BSE at Rs 130.50/share (14.99% equity change hands).
In the midcap space, the gainers were STC India, Jai Corp, Hotel Leela, HMT and State Bank Mysore with 2.8 to 4.4 surged.
Asian Star, Allcargo Global, Balrampur Chini, Shree Renuka and Tulip Telecom down 1.6 to 3pc were on the losing side.
In the smallcap space, Graviss Hospital, Gulf Oil Corp, J Kumar Infra, Kwality Dairy and Thinksoft gained 5 to 8pc while Subhkam Capital, Prraneta Ind, Vindhya Telelink, Sulzer and Maharashtra Polybutenes dipped 3 to 5pc.
Asian markets were quite supportive today. Hang Seng gained 1.5pc and Jakarta went up 2pc. Kospi and Straits Times gained 1.2pc each. Shanghai, Nikkei and Straits Times surged 0.5 to 0.8pc.
Sensex above 17000; Reliance, ICICI up
Nifty continued its northbound journey and opened on strong note. Buying was seen across all sectors. Heavyweights like Reliance, ICICI Bank, Bharti, L&T, HDFC and DLF were the gainers.
At 9:02 am, Nifty was trading at 5229, up 31 points and the Sensex was at 17487, up 104 points. CNX Midcap rose up 56 points at 7575 and the BSE Smallcap gained 43 points at 8512.
Among the frontliners, the gainers in the early trade were DLF, ABB, Reliance Communications, Reliance Industries, Suzlon Energy, Idea Cellular, Jaiprakash Associates, L&T, Reliance Infrastructure, Reliance Capital, Hindalco, ICICI Bank and Axis Bank, while BPCL and ITC were marginally weak.
Midcap & Smallcap space:
Hotel Leela and Indian Hotel moved up 1.7 to 2.5pc.
Neyveli Lignite surged 3pc, the company is set to replace REC loan with cheaper loan from Bank of Baroda.
GMR Infra and Punj Lloyd gained 1.5pc.
Ashok Leyland was up 2pc%.
However, Apollo Tyres dipped 0.7pc and NMDC slipped 0.5pc.
Balrampur Chini and Shree Renuka Sugar lost over 1pc.