Key benchmark indices on Thursday surged after the Reserve Bank of India (RBI) fully sold the government’s Rs 20,000-crore worth of debt on offer, thereby accomplishing the country's biggest ever auction, led by buying in index heavyweights and a rebound in hitherto beaten IT stocks.

The markets closed 352 points or 1.58 per cent up Thursday with the rally being led by automobile, banking, IT, capital goods, oil and gas and metal sectors.

The 30-scrip S&P Sensex of the BSE, which opened at 22,327.76 points, closed at 22,628.84 points, up 351.61 points or 1.58 per cent from its previous day close at 22,277.23 points. The Sensex touched a high of 22,648.69 points and low of 22,312.19 points intra-day.

The 50-unit CNX Nifty at NSE gained 104.10 points or 1.56 per cent to settle at 6,779.40, its highest closing level since April 10. The index hit a high of 6,783.05 and a low of 6,684.40 in intraday trade.

Market breadth, indicating the overall health of the market was strong as all 13 sectoral indices on BSE rose. The barometer index of the BSE Sensex reached its highest closing levels in almost a week, while the 50-unit CNX Nifty of the NSE reached one-week closing high. The broader markets also had a cheerful day, with the BSE midcap index rallying by almost 1.5 per cent each.

Domestic stocks snapped a three-day losing streak on Thursday as the popular Sensex at BSE had declined 438.10 points, or 1.92 per cent in three trading sessions to settle at 22,277.23 on Wednesday, from its recent high of 22,715.33 on April 10.

From a 52-week low of 17,448.71 on August 28, 2013, the Sensex has risen 5,180.13 points or 29.68 per cent.  The Sensex is off 163.65 points or 0.71 per cent from its record high of 22,792.49 on April 10.

Among the broader markets, the BSE Mid-Cap index gained 106.53 points or 1.47 per cent to settle at 7,339.29, while the BSE Small-Cap index was up 105.79 points or 1.43 per cent to settle at 7,524.01. Both indices underperformed the Sensex.