Markets staged a strong rally on an across-the-board buying frenzy, lifting Sensex 576 points to a nearly 3-month high of 25,881.17 and the Nifty 186 points above 7,900 at the close, amid strong reform measures by the Centre and robust global cues.
Besides, encouraging quarterly results and expectations of a good monsoon this year also made investors bolder.
The Union Cabinet today approved the first-ever policy for the country's capital goods sector envisaging creation of over 21 million new jobs by 2025.
The Sensex opened strong at 25,432.10 and continued to rise to hit the day's high of 25,897.87. Finally, it settled at one-month high of 25,881.17, a gain of 575.70 points or 2.28 per cent -- its biggest single-day gain since March 1.
The 50-share NSE Nifty recaptured the 7,900-mark to hit a high of 7,941.20 before winding up at 7,934.90, a hefty rise of 186.05 points or 2.40 per cent.
Financials led the powerful rally followed by capital goods, technology, power, energy, realty and auto.
Covering-up of pending short positions by traders ahead of the F&O expiry in the derivatives segment on Thursday predominantly supported the upside even better-than-expected Q4 earnings result, too, weighed on trade.
Elsewhere in the region, barring China, most Asian markets closed on a firm note following strong Wall Street close overnight.
Hongkong led the rally, surging 2.71 per cent, followed by Japan 1.57 per cent, South Korea 1.18 per cent, Taiwan 1.15 per cent and Singapore 0.60 per cent.
European bourses are trading firmly higher with DAX up 1.30 per cent, CAC 1.02 per cent and FTSE 0.65 per cent.
Meanwhile, foreign portfolio investors (FPIs) sold shares
worth a net Rs 815.53 crore yesterday, as per provisional data released by the stock exchanges.
In the domestic market, 29 scrips out of 30-share sensex pack ended higher while only one scrip closed lower.
Major gainers were ICICI Bank (4.48 pct) followed by Bhel (4.34 pct), L&T (4.02 pct), Bajaj Auto (3.96 pct), Maruti (3.47 pct), SBI (3.30 pct), HDFC (2.87 pct), HDFC Bank (2.80 pct), Gail (2.76 pct), Asian Paints (2.74 pct), Axis Bank (2.67 pct), NTPC (2.46 pct) and TCS (2.40 pct).
However, shares of Pharma major Cipla today tumbled over 7 per cent after the company's March quarter numbers came below market expectations and was the only loser witnessing a fall of 4.97 pct.
Among the S&P BSE sectoral indices, Bankex rose by 3.17 pct followed by Capital Goods 2.96 pct, Finance 2.59 pct, IT 2.25 pct, Teck 2.21 pct, Power 2.04 pct and Oil&Gas 2.01 pct
However, mid-cap and small-cap rose by 0.97 and 0.94 per cent respectively on fresh buying by retail investors.
The market breadth turned positive as 1,579 stocks ended higher, 960 finished in red while 180 ruled steady.
The total tunrover fell to Rs 2,323.39 crore from Rs 2,608.00 crs yesterday.
