Rising for the fourth day, the BSE benchmark Sensex today jumped by 227.49 points to end at six-week high of 19,406.85 on good buying in auto, metal, banking and power scrips amid hopes of at least 0.25 per cent interest rate cut by RBI and a rating upgrade by agencies.
The 30-share Sensex opened higher at 19,192.11 on positive cues from Asian markets and firmed up further to a high of 19,434.85 as FIIs bought shares in rate-sensitive sectors on hopes of RBI slashing interest rates on May 3 and talks of global agencies upgrading India's sovereign rating.
Sensex finally closed at 19,406.85, a net rise of 227.49 points or 1.19 per cent from its last close. Today's closing was the index's highest closing since 19,427.56 on March 15.
In the last four sessions, it has gained over 675 points.
Similarly, the NSE 50-share Nifty also rose by 79.40 points or 1.36 per cent to finish at 5,916.30 today.
HDFC, RIL, Tata Motors, ICICI Bank and ITC mainly drove benchmark indices higher. Dr Reddy's, Gail, Tata Motors, NTPC, Maruti Suzuki, Hero Motorcorp and M&M also shot up sharply.
Across the market, over 1,200 scrips rose helping investor wealth soar by Rs 59,000 crore to Rs 66.13 lakhcrore.
Talking to reporters after meeting a with representatives of rating agency S&P, Economic Affairs Secretary Arvind Mayaram in New Delhi said: "I think there is a case for an upgrade because we have taken the kind of decisions that most of countries in the world have not been able to take."
Similar meeting has taken place with Fitch on April 12. S&P currently rates India as 'BBB-', lowest in the investment grade, with a negative outlook.
"Hopes of atleast 0.25 per cent rate cut on inflation worries is easing, is helping markets rise. A rating upgrade cannot also be ruled out," said Gautam Sinha Roy, VP-Equities, Motilal Oswal Securities.
In monthly derivatives expiry, dealers said April series witnessed strong up-move led by the banking but IT and metal stocks remained under pressure.
Outside of benchmark indices, aviation stocks saw good rise with SpiceJet surging 18.2 per cent and Jet jumping 11 per cent.
