Stock markets rebounded sharply from their 20-month lows on hectic short-covering after hints of more stimulus measures from the European Central Bank triggered a worldwide relief rally.
It sent benchmark Nifty surging by a healthy 146 points to close comfortably above the psychological 7,400-mark on the National Stock Exchange (NSE) here.
Financial markets around the globe heaved a sigh of relief after the dovish ECB chief Mario Draghi hinted that new stimulus may be forthcoming at the central bank's meeting in March, despite the release of disappointing PMI data across Europe.
The big turnaround in crude prices which rallied well above USD 30 mark also provided the much needed relief and impetus for the turnaround.
After a strong start driven by the spill-over effects of buoyant overseas sentiment, bourses kept intact the upbeat momentum throughout the session as value buying once again re-emerged after recent panic sell-off even as rupee recouped from their multi-month lows.
All sectoral indices saw marked jump with financials, particularly severely beaten state-run banking stocks, metals, auto, energy, pharma and realty taking the lead.
Though investors remained circumspect it being earnings season with some hesitation ahead of January series expiry next week.
The 50-share Nifty opened with a gap-up at 7,355.70 and moved between 7,433.40 and 7,327.60 before concluding at 7,422.45, surging by a hefty 145.65 points, or 2.00 per cent.
Strong buying activity was seen across the spectrum of sectoral indices alongwith mid-cap and small-cap, which largely outperformed the benchmark.
The Nifty PSU Bank index topped the chart, rallying by 5.03 per cent. It was followed by metal (4.45 per cent), auto (3.92 per cent), Bank Nifty (2.62 per cent), energy (2.44 per cent), pharma (2.43 per cent), media (2.36 per cent), realty (1.79 per cent), IT (0.66 per cent) and FMCG (0.47 per cent).
HDFC, ICICI Bank, Reliance, L&T, SBI, Maruti, M&M, Tata Motors, Axis Bank, TCS, Kotak Bank, ONGC, Dr Reddys, Heromoto, Sun Pharma, HDFC Bank and ITC were the major index gainers.
Among the notable losers were Idea, Bharti Airtel, Bosch, HUL and Infosys.
On stocks specific action, airline shares crash landed on heavy short-selling reacting to IndiGo's tepid second quarter numbers.
Turnover in cash segment fell to Rs 17,412.42 crore from Rs 18,082.19 crore yesterday. A total of 9,058.9 lakh shares changed hands in 79,76,883 trades. The market capitalisation of NSE stood at Rs 90,09,933 crore.
