In a day of see-saw trade, the benchmark S&P BSE Sensex rose 219 points to the highest level in more than two weeks after the Prime Minister's optimistic comments on the rupee and economy assured investors ahead of the release of Q1 GDP data.
Prime Minister Manmohan Singh told Parliament the country will face "short-term shocks" but exuded confidence that growth in the current fiscal will rise to 5.5 per cent, up from a decade's low of 5 per cent in 2012-13. He acknowledged that growth in the first quarter will be relatively flat.
On the rupee, Singh said "the sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms."
The 30-share Sensex opened at 18,424.72 from yesterday's close of 18,401.04 and traded between 18,272.76 and 18,679.26 before heavy buying in the last 90 minutes helped it to settle at 18,619.72, a rise of 218.68 points or 1.19 per cent.
The Nifty index on the National Stock Exchange rose 62.75 points, or 1.16 per cent, to end at 5,471.80, after moving between 5,360.20 and 5,493.30. The SX40 index on the MCX-SX ended at 10,938.49, up 88.98 points.
Bajaj Auto and Cipla were the biggest gainers on the Sensex, which closed at the highest level since August 14, when it was at 19,367.59. The index clocked its first weekly gain in six, adding 100.28 points over the past five sessions. This month, the Sensex has fallen 726 points.
Consumer durables, healthcare, bank and IT company shares led sectoral gains. TCS, HDFC Bank, HDFC and Hindustan Unilever were the biggest contributors to gains in the Sensex.
Receding fears of an attack on Syria after British lawmakers voted against military action in the House of Commons, which had kept global oil prices under pressure, also aided market sentiment.
