The start was a bit sluggish, and movements till about an hour past noon, despite staying positive, were not any significantly impressive, but the Indian stock market rallied smartly thereafter thanks to some hectic buying in the banking space.
Stocks from capital goods, oil and power sectors too edged higher and there were smart gains for a few stocks from automobile, information technology and healthcare space as well. Select stocks from FMCG, telecom and consumer durables sectors too found support.
Concerns about near term liquidity in the economy appeared to be weighing on sentiment early on in the session, but the mood turned positive as the day progressed even as investors looked ahead to the GDP data for the September 2016 quarter.
The BSE benchmark Sensex, which rallied to 26,680.55, ended with a gain of 258.80 points or 0.98% at 26,652.81. The Nifty50 of the National Stock Exchange ended up 82.35 points or 1.01% at 8224.50, slightly off the day's high of 8234.25.
In the forex market, the rupee recovered after a slightly weak start, and was trading at 68.48 a dollar around late afternoon, up 0.2% from its previous close of 68.66.
Among the stocks in the Bankex, ICICI Bank gained 3.7%, State Bank of India advanced 2.2%, HDFC Bank gained 1.7% and Axis Bank ended nearly 1% up. IndusInd Bank and Yes Bank gained 2.8% and 2.4%, respectively, while Kotak Bank, Federal Bank, Bank of Baroda and Punjab National Bank gained 1.5% -1.7%.
Canara Bank, Bank of India, Allahabad Bank, Oriental Bank of Commerce, IDBI Bank, Andhra Bank, Syndicate Bank and Union Bank of India also ended with strong gains.
Maruti Suzuki ended 3.4% up. Larsen & Toubro, Tata Steel, Hindustan Unilever, Asian Paints and ONGC ended higher by 1% - 2%. Power Grid Corporation, Bajaj Auto, Tata Consultancy Services, HDFC, ITC, Adani Ports, Sun Pharmaceutical Industries and Hero Motocorp also ended on a firm note.
Cement stocks Ambuja Cements, ACC, UltraTech Cement and Grasim Industries gained 2% - 3%.
Tata Power ended 2.5% up. Eicher Motors gained 2.2%. Bharti Infratel and Bosch advanced by 1.5% and 1%, respectively. Tech Mahindra and BHEL posted modest gains.
Idea Cellular shed 2.7% after the company denied reports that it was planning a stake sale. Lupin declined 1.3%. GAIL India, Reliance Industries, Zee Entertainment Enterprises and Cipla also ended weak.
Sarda Energy & Minerals, Vivimed Labs and Eros International saw some strong buying on stock specific news.
The market breadth was strong. Out of 2794 stocks traded on BSE, 1765 stocks moved up. 827 stocks declined and 202 stocks ended flat.