Equities jumped along with the rupee, tracking rally in global markets after Bank of Japan surprised with a negative interest rate policy while investors creating fresh positions following start of new derivatives series also perked up the sentiment.
Gold, however, following overseas prices, retreated from three-month high by falling Rs 85 to Rs 27,050 per 10 grams.
The benchmark BSE Sensex rallied 401.12 points or 1.64 per cent to 24,870.69 on across-the-board buying, driven by a firming trend in global markets following Bank of Japan's bold move to adopt negative interest rates policy and beginning of February series in the derivatives segment.
Consequently, the market capitalisation of the companies listed on BSE rose by nearly Rs 1 lakh crore to Rs 93,92,133 crore.
Besides, the NSE Nifty reclaimed the crucial 7,500-mark by climbing 138.90 points or 1.87 per cent to 7,563.55.
All the BSE sectoral indices led by consumer durables, IT, healthcare, capital goods, auto and metal ended in the green, reflecting widespread buying, rising up to 3.26 per cent.
Keeping with the overall trend, broader market BSE mid-cap rose 2.02 per cent, while BSE small-cap edged up by 1.07 per cent.
Globally, most Asian markets closed up with Japan's Nikkei surging 2.80 per cent, Shanghai 3.09 per cent and Hong Kong's Hang Seng by 2.54 per cent higher. European indices were also trading firm in their early deals.
In sync with local equities, the rupee also strengthened by 45 paise to close at 67.78 against the dollar.
Gold prices in the national capital fell by Rs 85 to Rs 27,050 per 10 grams today, while in Mumbai the yellow metal (99.9 purity) lost Rs 250 at Rs 26,700 per 10 grams, tracking a weak trend overseas and muted demand from jewellers at existing levels and strengthening rupee.
Globally, in London, gold was trading 0.24 per cent down at USD 1,112.30 an ounce and silver was down 0.14 per cent at USD 14.20 an ounce.
