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Benchmark indices have extended the gains on strong global cues, along with metals, financials and oil shares leading the gains.
By 14:35, the Sensex surged by 468 points at 19,344 mark and Nifty was higher by 135 points at 5,818 levels.
Japan's Nikkei share average rose 3.5 percent to its highest close this month, helped by optimism that China on that the U.S. Federal Reserve will not soon rein in its stimulus measures and by encouraging Japanese economic data.
Modest gains in Asian markets also lifted the mood as the benchmark Nikkei ended 463.77 points higher at 13,677.32, the highest close since May 31. The index gained 3.4 percent for the week, extending its winning streak to two weeks, after a confidence-sapping sell-off that began last month.
Concerns over China's credit crunch continued to subside with Beijing's central bank pledging to ensure reasonable lending growth and stable markets.
Back home, on the back lower current account deficit (CAD) rupee appreciated today against the dollar and came below the Rs 60 level and was trading at Rs 59.56 against the dollar.
On the sectoral front, BSE Metal index has zoomed by over 4% followed by counters like PSU, Capital Goods, Oil & Gas, Auto, Power, Realty and Banks, all gaining by 2-3% each. However, BSE Consumer Durable and IT indices are down by 1% each.
Coal India is trading higher by 7% on reports that the Cabinet has agreed to set up a coal regulator that will monitor the supply and pricing of the fuel.
Shares of oil and gas companies are trading higher on BSE after the Cabinet Committee of Economic Affairs (CCEA) agreed to raise gas prices to US$8.4/mmbtu, effective April 2014, for a period of five years.
Oil and Natural Gas Corporation of India (ONGC), Reliance Industries, Oil India and Cairn India are up between 4-10% on BSE.
Financial shares are up on short covering and bargain hunting after the recent correction. HDFC Bank, HDFC, ICICI Bank and SBI have increased 1-2%.
Other notable gainers are Tata Motors, BHEL, L&T, GAIL and Bajaj Auto, all surging between 2-3%.
Crompton Greaves has rallied 9% to Rs 87 after its board approved the buyback of the company’s equity shares at a maximum price of Rs 125 per share via open market.
Shares of fertilizer companies have moved higher by over 4% after the Finance Minister, at a press conference today, said that the government would consider offering subsidies to power and fertiliser industries to soften the impact post the steep hike in natural gas prices from April 1.
"The power and fertiliser ministries have raised the issue. We can look at fixing the input costs for these sectors. The issues will be addressed in course of time," the Reuters report suggests quoting Finance Minister P. Chidambaram.
Among the individual stocks, Chambal Fertilisers has rallied 7% to Rs 35.80, followed by Rallis India (6% at Rs 137), RCF (4% at Rs 32.50) and National Fertilisers (2% at Rs 34.60) on BSE.
The market breadth in BSE remains positive with 1,421 shares advancing and 840 shares declining.
