The benchmark Nifty recouped nearly 1.50 per cent amid bouts of buying in beaten down and fundamentally strong stocks and gained 110.95 points, the biggest single-day gain in nearly seven weeks to finish well above the psychologically important 7,800-level.
Sentiments got revived on bullish Asian cues after overnight rally in US stocks following the release of Federal Reserve minutes which signalled chances of interest-rate hike in December.
The domestic rupee recovery and government's announcement on reforms, including 3 per cent interest subsidy scheme for exporters and stake sale in Coal India as well as IPO of Cochin Shipyards along with higher European opening, helped the bourses surge.
The index witnessed a gap-up opening and continued its upward journey to reach 7,854.90 before ending with good gains.
Buying was led by components like Energy (1.91 per cent), Financials (1.81 per cent), Banks (1.55 per cent), IT (1.81 per cent), Auto (1.39 per cents), Metal (1.22 per cent), FMCG (1.13 per cent), Infra (1.08 per cent) and Commodities (1.17 per cent).
The 50-share Nifty opened higher at 7,788.50 and traded between 7,854.90 and 7,765.45 before closing at 7,842.75, showing a sharp gain of 110.95 points, or 1.43 per cent.
Stock wise, major gainers were Bajaj Auto (3.64 per cent), Tech Mahindra (3.43 per cent), HCL Tech (3.35 per cent), Zee Ltd (3.24 per cent), HDFC (3.01 per cent), Infosys (2.73 per cent), Maruti (2.58 per cent) and Reliance (2.49 per cent).
Turnover in cash segment rose to Rs 15,315.55 crore from Rs 14,458.01 crore yesterday. A total of 7,855.18 lakh shares changed hands in 67,97,680 trades.
The market capitalisation of NSE stood at Rs 95,39,872 crore.
