Positive global and domestic cues uplifted investors' sentiments which helped in sustaining the momentum to the ongoing rally in the Indian equity markets, with a barometer index gaining more than 247 points on Thursday.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day's trade with gains of more than 247 points or 0.88 percent during day's trade.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also made gains during the day's trade. It closed 84.25 points or 0.99 percent up at 8,608.05 points.
The S&P BSE Sensex, which opened at 28,259.70 points, closed at 28,446.12 points, up 247.83 points or 0.88 percent from the previous day's close at 28,198.29 points.
The Sensex touched a high of 28,478.43 points and a low of 28,245.81 points in the intra-day trade.
Markets analysts tracking the day's trade said the exchanges opened on "a quiet note" but later traded higher on easing of the concerns over Greece debt crisis.
More From This Section
The market participants were also enthused by the announcement of diesel and petrol rate cut announced on Wednesday, analysts said.
"Global cues from Greece and the US coupled-with the expectations of a rate cut by the Reserve Bank of India (RBI) buoyed investor sentiments," Anand James, co-head, technical research desk, Geojit BNP Paribas, told IANS.
On Wednesday, Greece legislators passed various austerity laws aimed at paving the way for a European Union (EU) backed bailout package.
Investor-anxiety over the US rate hike was also calmed after the initial comments made during the US Fed chairman's testimony to the US Congress suggested a delay in the decision.
Investors are also hopeful of a lending rate cut by the RBI in its upcoming monetary policy review in August.
Investors are pinning their hopes on the fact that the key data points such as Index of Industrial Production (IIP), Consumer Price Index (CPI) and Wholesale Price Index (WPI) have broadly come in line with previous estimates.
According to James, after the Iran nuclear deal, global crude oil prices are also on the downside. This he cited as a good sign for India, which is one of the largest importers of Iranian crude oil.
"Our exports to Iran will also benefit. Added to this, the prospects of cheaper crude oil will vastly benefit a major net-importer of crude like India," James elaborated.
Industry insiders expect oil prices to plunge as and when Iran resumes exporting oil at the pre-sanction levels. The west Asian state is believed to have around 25-30 million barrels of oil ready for export.
After Tuesday's massive volatility, Brent index stood at $57 and the West Texas Intermediate (WTI) at $52 per barrel on Thursday. WTI had fallen to $44 per barrel on Tuesday.
Gaurav Jain, director with Hem Securities, said: "Government's approval on composite FDI (Foreign Direct Investment) cap resulting in more capital flowing into the system lifted the sentiment."
The cabinet has approved for composite cap for foreign investments in a company. This will remove the distinction between FPI (Foreign Portfolio Investor), FDI and NRI (Non Resident Indian) investments.
The decision assumes significance as it can benefit companies, especially private banks which have separate caps for FII (Foreign Institutional Investor) within the total foreign investment limit.
During Thursday's trade, all of the 12 sector-based indices of the S&P BSE closed higher.
The S&P BSE bank index soared by 411.26 points, the consumer durables index jumped by 221.16 points, capital goods index was higher by 121.34 points, healthcare index augmented by 185.81 points and the oil and gas index rose by 100.20 points.
The major Sensex gainers during Thursday's trade were: Axis Bank, up 4.14 percent at Rs.608.75; BHEL, up 2.36 percent at Rs.279.75; HDFC, up 1.62 percent at Rs.1,362.50; HDFC Bank, up 1.54 percent at Rs.1,113.55; and Cipla, up 1.43 percent at Rs.679.45.
The major Sensex losers were: Vedanta, down 1.17 percent at Rs.143.70; Mahindra and Mahindra (M&M), down 0.91 percent at Rs.1,276.05, Wipro, down 0.80 percent at Rs.573.25, Hero MotoCorp, down 0.38 percent at Rs.2,650 and Gail, down 0.37 percent at Rs.372.75.
Among the Asian markets, Japan's Nikkei was up by 0.67 percent, China's Shanghai Composite Index rose by 0.31 percent, and Hong Kong's Hang Seng gained by 0.43 percent.
In Europe, the London FTSE 100 index was up by 0.56 percent, the French CAC 40 was higher by 1.61 percent, and Germany's DAX Index gained by 1.62 percent at the closing bell here.