Mumbai: Markets shed away their 7 day loss and closed in green on Thursday. The benchmark BSE Sensex surged 330.45 points to close at 34,413.16 while Nifty jumped 100.15 points to 10,576.85 on Thursday.
Sensex started gaining momentum in afternoon trade and rallied over 482 points on continued buying by domestic funds and recovery in the rupee amid higher Asian markets.
On the other hand, Brent crude futures tumbled to a six-week low of USD 65.16 per barrel. A fall in crude prices is seen as positive for Indian economy, which imports most of its oil requirements.
The 30-share barometer stayed in the green through the session on all-round buying.
The index had lost 113.23 points in the previous session following the Reserve Bank's decision to leave the interest rates unchanged that caught the market by surprise.
Brokers said buying by domestic institutional investors (DIIs) and a mixed trend at other Asian bourses improved the market sentiment. DIIs had bought shares worth Rs 461.19 crore, while foreign funds sold shares to the tune of Rs 1,022.50 crore on Wednesday.
Upward trend in global market also kept the sentiments of the investors high on Thursday.
The rupee, at 64.15 notched up gains against the dollar (intra-day), which spurred the bulls. The broader markets also saw strong buying with BSE small-cap and mid-cap indices rising up to 2.33 per cent.
The gains were broad-based with most of the sectoral indices on the BSE trading in the green. Realty, IT, Banking, Auto and pharma stocks led the gains up to 3.11 per cent.
Major gainers were Dr Reddy's, Sun Pharma, Infosys, TCS, HDFC LTD, Hindunilver, L&T, Maruti Suzuki, M&M and RIL, gaining up to 3.57 per cent.
Axis Bank, PNB, Federal Bank, State Bank of India, Bank of Baroda, Yes Bank, Kotak Bank, HDFC Bank, IndusInd Bank and ICICI Bank advanced by up to 2.70 per cent.
With inputs from PTI.