The market sentiment turned positive on indications that the Government may gradually increase prices of diesel and kerosene to cut subsidies and rein in fiscal deficit.
The rally was mainly spearheaded by energy stocks like Reliance Industries, ONGC and BPCL, which rose by over by 2.5 per cent amid huge volumes. Good buying was also seen in technology and FMCG stocks.
Trading began on a firm note after overnight sell-off with most buying coming in oil-related stocks and some specific scrips supported by positive global cues. Despite some profit-taking in financials and pharma stocks, the key index managed to close above the 5,900 level.
Globally, amidst concerns over the ongoing fiscal cliff saga, most Asian markets ended up with Japan's Nikkei jumping to a 21-month high, buoyed by hopes that the world
