The Indian stock market ended on a buoyant note on Wednesday, with investors picking up stocks, betting on hopes the government would continue to push economic reforms.
Lower crude oil prices and positive lead from global markets kept the undertone bullish today.
Further, remarks from the World Bank that demonetization will help the economy in the medium term despite short term hassles, and comments by Prime Minister Narendra Modi that his government is committed to continue reforms aided sentiment.
Markets across the globe were looking ahead to U.S. President-elect Donald Trump's press conference, scheduled to take place later in the day.
The BSE benchmark Sensex ended up 240.85 points or 0.9% at 27,140.41, after scaling a high of 27,174.82 intraday, its best in two months. The Nifty50, which too hit a 2-month high as it rallied to 8389.00, ended at 8380.65, gaining 92.05 points or 1.11%.
In the forex market, the rupee was trading at 68.29 against the U.S. dollar around late afternoon, down 11 paise from its previous close of 68.18.
Metal and bank stocks hogged the limelight. A surge in global commodity prices triggered hectic buying in the metal space. The NiftyMetal index surged 4.27%. On BSE, the Metal index gained 4.42%. The BSE Bankex rose 2.4%. The Nifty Bank index ended 2.28% up. Consumer durables, automobile, healthcare, capital goods and power stocks found good support. A few stocks from oil sectors edged higher, while information technology stocks were mostly subdued.
Coal India surged nearly 5.5%. Tata Steel gained 4%. Lupin, Larsen & Toubro, ICICI Bank, Power Grid Corporation, HDFC Bank, State Bank of India, Maruti Suzuki, Sun Pharmaceutical Industries, Axis Bank, Mahindra & Mahindra, NTPC, HDFC and Asian Paints gained 1% - 2.3%.
IndusInd Bank ended nearly 6.5% on strong quarterly results. Hindalco gained 6.2%. Bank of Baroda, Yes Bank, Ambuja Cements, ACC, Zee Entertainment Enterprises, Kotak Bank and UltraTech Cement gained 2% - 3.4%. Grasim Industries gained nearly 1%.
IT stocks HCL Technologies, Infosys and Wipro ended weak.
Bajaj Auto declined 1.1%. ITC, Reliance Industries, Tata Power and ONGC ended modestly lower.
The market breadth was strong. Out of 2970 stocks traded on BSE, 1728 stocks posted gains. 1077 stocks declined and 165 stocks ended flat.