The BSE benchmark Sensex on Friday closed 121 points higher on buying in energy stocks following reports of a gradual hike in fuel prices amid a firming global trend.
Led by energy major Reliance Industries and ONGC, the Sensex closed 121.04 points up, or 0.63%, to 19,444.84.
The broad-based National Stock Exchange index Nifty spurted by 38.25 points, or 0.65%, to 5,908.35.
Brokers said energy majors like RIL, ONGC, Indian Oil and Bharat Petroleum remained on the fore-front following reports that the government might gradually increase the diesel price next year to cut subsidies.
They said the uptrend was further supported on a firming global trend as US lawmakers arranged talks with political parties before a budget deadline.
In 30-BSE index kitty stocks, 22 closed with gains while eight surrendered moderate ground led by banking sector on profit-booking from recent upsurge.
The oil and gas sector index gained the most by 2.38% to 8,510.52 as segment major and index-heaviest Reliance Industries surged 2.73% to Rs. 840.35 and ONGC by 2.49% to Rs. 265.85.
Among others, Oil India added 1.52% to Rs. 466.15, Indian Oil by 3.03% to Rs. 268.80, Hindustan Petroleum by 4.23% to Rs. 292.90 and Bharat Petroleum by 2.23% to Rs. 353.05.
The information technologies sector was second best performer by rising 1.21% to 5,686.98, while banking sector index declined 0.01% to 14,330.47 as investor booked profits from the recent surge.