In all nearly 1,500 stocks rose on the BSE taking investor wealth up by Rs 1 lakh crore to Rs 63.63 lakh crore.
The 30-share Sensex opened 260 points higher tracking overnight gains in US market. Reports of a new 'Quantitative Easing' plan by Fed and hopes India will take more bold steps on economic reforms after hiking diesel price by Rs 5.63 per litre, set the day's trend.
The positive sentiment prevailed despite inflation rising by a higher-than-expected 7.55 per cent in August, which may restrain RBI from cutting interest rates at its monetary policy review next week, said dealers.
As session progressed, stocks built on the momentum as 24 shares of the 30-share Sensex closed with gains, led by Jindal Steel and Hindalco which rose over 8 per cent each.
RIL, SBI and ICICI Bank rose around 5 per cent each helping Sensex gain 443.11 points, extending the current rally to eight straight days where it vaulted over 1,100 points.
Today's closing of 18,464.27 points is a 14-month high since Sensex closed at 18,518.22 on July 26, 2011.
More From This Section
The 50-share NSE index Nifty today rose by 142.30 points, or 2.62 per cent to 5,577.65.
"Sensex rallied 2.5 per cent in response to government's first major move to curb fiscal deficit by raising diesel price and announcement of economic stimulus by the Federal Reserve. Aviation, retail and cable TV services shares rallied on hopes of green signal to hike in FDI cap," said Sanjeev Zarbade, VP - Private Client Group Research, Kotak Securities.
Across 13 BSE sectoral indices, 11 indices rose with Realty, Metal and Bankex jumping 4-5 per cent. Capital Goods, Auto, Oil&Gas and IT shares logged 2-3.5 per cent gains.
Brokers said a firming trend in the Asian region and higher opening in Europe further fuelled the uptrend. (MORE)