The BSE Sensex and NSE Nifty ended the day up 195 points and 52 points, respectively.
The Sensex closed at 16,649, while the Nifty closed at 5,049. The positive global cues, rate cut hopes and infrastructure targets set by the Prime Minister, Dr Manmohan Singh, brought cheer in the markets.
The improvement in the rupee also boosted investor sentiments.
“Bulls continued to have an upper hand for yet another day. Domestic sentiments improved further on yesterday’s Dr Manmohan Singh’s announcements of big thrust to the infrastructure sector to revive the slowing economic growth of the country. Initial gains were seen in capital goods stocks,” said Ms Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
Global markets also improved on hopes of that the policy makers will take steps to revive the economy. American markets were up higher than 2.3 per cent each, European markets were are up by 0.5 per cent each and two of the Asian markets were in the green.
The top gainers on the BSE were Sterlite, HDFC bank and ICICI Bank, while the top losers were Wipro, TCS and GAIL.