The benchmark BSE Sensex today surged by over 517 points-- its biggest one-day gain in nearly two-and-a-half months-- to end at 27,975.86 on across-the- board buying amid firm global cues.
Brokers attributed the the steep rise to value buying from an "over-sold" position after persistent fall in stock prices in the past several sessions on profit-booking amid geo-political tension in the Middle East.
The key index opened on a strong footing and gathered further momentum to retest the 28,000-mark. It touched the day's high of 28,017.97.
It finally settled 517.22 points, or 1.88 per cent, higher at 27,975.86.
The previous best one-day gain was on January 20 when the Sensex had rallied by 522.66 points.
Among the 30 BSE barometer shares, 26 ended in the positive territory with the shares of Bharti Airtel emerging as the best performer at 3.55 per cent, followed by HDFC Bank at 3.52 per cent.
ONGC soared 3.39 per cent after crude oil prices fell sharply in the global market.
The 50-share NSE Nifty recaptured the 8,500-level intra-day, but settled a tad lower at 8,492.30, 150.90 points, or 1.81 per cent higher than its previous close.
ITC, Axis Bank, L&T, Coal India, HDFC Bank, BHEL, Hero MotoCorp, SBI and ICICI Bank were among the Sensex gainers.
Sector-wise, the BSE Capital goods index gained the most with rise of 2.82 per cent, followed by Realty 2.19 per cent, PSU (2.19 pc), FMCG (2.11 pc),Infrastructure (2.03 pc) and Banking (1.80 pc) among others.
Buying activity in small and midcap sectors also gathered momentum, with the BSE smallcap index rising 3.40 per cent and Midcap index by 1.93 per cent.
Globally, Asian markets ended higher, boosted by hopes for more Chinese economic stimulus and European markets were trading in positive zone in their early trade amid optimism that central banks will continue to support global growth.
Meanwhile, Foreign Portfolio Investors (FPIs) sold shares worth Rs 320.52 crore while Domestic Institutional Investors (DIIs) bought shares worth Rs 674.76 crore last Friday, as per provisional data.
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