Broad-based gains helped both headline indices -- Sensex and Nifty50 -- finish the day more than two percent higher. Reliance Industries, HDFC Bank, HDFC and Infosys were the biggest contributors to the surge in both gauges.
Indian equity benchmarks built on the previous day's comeback on Wednesday as strong buying emerged across sectors barring the metal space. Financial, IT and oil & gas shares were the biggest contributors to the gain in headline indices.
Investors globally returned to stocks hammered in the recent sell-off, though geopolitical uncertainty having its roots in the Russia-Ukraine war remained in focus.
The 30-scrip Sensex index ended 1,223.2 points or 2.3 percent higher at 54,647.3 and the broader Nifty50 benchmark settled at 16,345.4, up 331.9 points or 2.1 percent from its previous close -- both extending gains to a second straight day after four days of fall.
Among blue-chip stocks, Asian Paints, Reliance Industries, Bajaj Finance, IndusInd Bank, Mahindra & Mahindra, Bajaj Finserv and Tata Motors -- closing between 3.9 percent and 6.1 percent higher -- were among the top gainers.
On the other hand, Shree Cement, ONGC, Power Grid, NTPC, Coal India and Tata Steel -- falling between 1.1 percent and 2.6 percent -- were the worst hit among the 10 laggards in the Nifty50 pack.
Reliance Industries, HDFC Bank, HDFC and Infosys were the biggest boosts for both Sensex and Nifty50.
The Nifty Bank jumped two percent, with HDFC Bank, SBI, ICICI Bank, Axis Bank and Kotak Bank rising 0.8-3.3 percent.
"Smart investors saw value in current market valuations. Dip buying is noticed in heavyweights and defensives like IT and pharma, and value buying in private banks... The domestic market is also reacting positively to exit polls and in anticipation of in line state election results," said Vinod Nair, Head of Research at Geojit Financial Services.
IndiGo rose 6.9 percent and SpiceJet 6.1 percent after the government announced the resumption of international flights from March 27. Unlock theme stocks also rose, with Indian Hotels and Delta Corp being among the top gainers.
Brent crude was last seen hovering around $125 a barrel, having retreated from this week's 14-year high of $139. Besides ONGC, GAIL and Oil India were among the losers in the oil & gas space.
The Nifty Metal was the only sectoral index on NSE to close in the red, declining 0.2 percent, as global commodity prices eased from recent highs.
Broader markets strengthened mirroring the overall gain in the market. The Nifty Midcap 100 and Smallcap 100 indices finished the day 2.2-2.4 percent higher.
In the midcap and smallcap segments, Anupam Rasayan, Indiabulls Housing, IOL Chemicals and Venky's -- rising 10-20 percent -- were the top gainers. On the flipside, Bajaj Electricals, Blue Star, Nocil and Ingersoll-Rand -- down 1.7-5.4 percent -- were the top losers.
Overall market breadth was extremely positive, with an advance-decline ratio of 5:1 as 1,717 shares on NSE rose and 358 fell.
European shares made a comeback after a sell-off that stretched to four sessions in a row, fuelled by concerns about mounting Western sanctions on Russia after it invaded Ukraine. The pan-European Stoxx 600 index was up 3.2 percent at the last count.
S&P 500 futures were up 1.7 percent, suggesting a gap-up start ahead on Wall Street.
Nagaraj Shetti, Technical Research Analyst at HDFC Securities, believes the Nifty50's short-term trend has reversed to positive. "The overall positive chart pattern signals a possibility the index will move towards important resistance at 16,800 levels in the next few sessions. Immediate support to be watched is at 16,200-16,150 levels," he said.
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First Published: IST