With the central bank intervening in the forex market and significantly arresting the rupee's slide this afternoon, the market has moved up in style once again, and looks headed for a buoyant close today.
Though most of the markets in the Asian region closed weak and European bourses are mostly subdued amid speculation about a military strike by the U.S. on Syria, the market back home is up sharply with investors looking for some bargain hunting after the previous session's terrible setback.
The Sensex is up 347 points or 1.9% at 18,581.66. The Nifty is up with a gain of 111.70 points or 2.1% at 5453.15.
Automobile stocks have come back strongly after staying a bit subdued early on in the session. Metal stocks are up again on fairly encouraging economic data out of China. Healthcare, IT, oil, bank and power stocks are also mostly up with handsome gains.
PSU, capital goods and consumer durables stocks are also attracting buyers. Realty and FMCG stocks, which traded weak earlier in the day, are now trading well off their lows, with a few of them even managing to post solid gains.
The rupee recovered sharply following aggressive dollar selling by the Reserve Bank of India to prevent the currency from falling to a record low amid volatility in global markets.
Investors also appear to be betting on hopes the new RBI governor Raghuram Rajan will bring a new approach to the central bank's defence of the rupee.