After swinging between gains and losses for close to four hours despite opening on a firm note, the market rallied sharply past mid afternoon, as investors indulged in some frenzied buying at several counters. A firm start in European markets aided sentiment to an extent.
The BSE benchmark Sensex, which tumbled to around 18,173 after a good spell in positive territory, rebounded sharply later in the day to 18,461.44 and eventually ended the session with a gain of 187.97 points or 1.03%. The Nifty index of the National Stock Exchange closed at 5558.70, gaining 63.60 points or 1.16%. The Nifty touched a low of 5477.20 and a high of 5569.25 during the day.
Information technology stocks led the rally. Key bank, realty and capital goods stocks too moved up sharply on hectic buying. Automobile, power and consumer durables stocks surged higher as well.
PSU, metal, healthcare and oil stocks turned in a mixed performance, while FMCG stocks were mostly subdued. While Midcap stocks had a fairly good outing, smallcap stocks lacked support.
IT heavyweights Tata Consultancy Services (2.2%), Wipro (2.2%) and Infosys (1.7%) moved higher, contributing significantly to the market's strong close. HCL Technologies, Hexaware Technologies, Tech Mahindra, NIIT Technologies, Oracle Financial Services and Financial Technologies also ended sharply higher.
Housing finance stock HDFC ended 3.7% up. Larsen & Toubro gained 2.3%. Tata Motors, Cipla, HDFC Bank, State Bank of India, Bharti Airtel and ICICI Bank moved up by 1.5% - 2%.
Reliance Industries, Bajaj Auto, NTPC, Tata Power, Reliance Industries, GAIL India, Sterlite Industries and Maruti Suzuki also ended higher, albeit with less pronounced gains.
Reliance Infrastructure, up 4.7%, was the top gainer in the Nifty index. Jaiprakash Associates, Axis Bank, Kotak Bank, Punjab National Bank, ACC, IDFC, Bank of Baroda and Lupin gained 2% - 4%.
NMDC, Ranbaxy Laboratories, Sesa Goa, Ambuja Cements, Cairn India and Power Grid Corporation also closed on a firm note.
The market breadth was slightly positive.