The BSE benchmark Sensex gained 133 points today to close at 17,332.62 on widespread buying despite a dip in industrial growth on renewed investor hopes that RBI may cut lending rates next week at its annual monetary policy meeting.
Besides, brokers said, investors did some value buying in bluechips at lower levels amid firm global markets.
Metal, banking, FMCG, auto and capital goods attracted good buying. However, technology stocks saw selling on caution ahead of IT bellwether Infosys results tomorrow.
Industrial production grew at a slower-than-expected 4.1 per cent in February, as against 6.7 per cent in the same month last year, according to the IIP data released today.
"While IIP showed weak performance by Indian industry, it is expected to increase the probability of monetary easing by RBI in the upcoming monetary policy. As a result, financial and auto stocks performed well," said Milan Bavishi, Head Research, Inventure Growth & Securities.
The Bombay Stock Exchange 30-share index opened the day higher at 17,276.87 and shot up further to 17,395.15. However, it settled at 17,332.62, up 133.22 points, or 0.77 per cent.
The NSE broader 50-issue Nifty also rose by 50 points or 0.96 per cent to end at 5,276.85.
Asian stock markets closed higher, with key indices in China, Hong Kong, Japan, Taiwan and Singapore gaining up to 1.82 per cent.
Key European markets showed mixed trend in the afternoon.
Overall, 23 of the 30 Sensex scrips closed in the green.
Jindal Steel shot up by 4.86 per cent, followed by Sterlite (3.91 pc), Maruti Suzuki (3.13 pc), Hindalco (3.02 pc), SBI (2.95 pc), Hero Motocorp (2.79 pc), Bhel (2.35 pc), ITC (2.16 pc), ICICI (1.53 pc), RIL (1.36 pc), Tata Steel (1.24 pc), HUL (1.13 pc), Tata Motors (1.04 pc) and Gail India (1.03 pc).
However, Infosys fell 1.87 pc, Ongc - 1.27 pc, Wipro - 1.27 pc and DLF - 1.09 pc.
Among sectoral indices, BSE-Metal rose 2.20 pc, Bankex -1.62 pc, FMCG - 1.50 pc, Auto - 1.25 pc and Capital Goods -1.03 pc, while IT declined by 1.15 pc and Teck - 0.78 pc.
The total market breadth at the BSE was turned positive, as 1,712 stocks gained ground, while 1,100 finished with losses. The total turnover moved down to Rs 2,235.59 crore, from Rs 2,383.42 crore yesterday.