The BSE sensex ended near its seven-week high, up 48.52 points at 3,130.46. The NSE Nifty Index also closed up 13.95 points at 990.80.
The rally was led by buying in technology and banking stocks - which had seen a brief correction on Tuesday.
Dealers said that there was a lot of bullishness in the market right from the start of trading. Tech stocks were major gainers matching their counterparts on the Nasdaq. Banking sector stocks proved that there was a lot of steam left with most of the public sector banks staging good rallies.
The rally in the banking stocks was fuelled by reports that the central government did not plan to charge any premium on the capital which is being returned by banks. Old economy stocks were also being bought by investors.
The prospect of a good rainfall during the current fiscal has been behind the rally in traditional fast moving consumer goods stocks.
During the last year, the country faced a drought-like situation, but this year
