Indian markets on Wednesday soared to over five-week highs with Sensex reclaiming 27,000-mark and Nifty inching closer to 8,100-level on the back of gains in metal and auto shares in line with a buoyant global trend ahead of US Federal Reserve's policy meeting outcome.
Hectic short-coverings ahead of the expiry of domestic derivatives contract tomorrow also boosted the trading sentiments, brokers said, adding that hopes of further economic reforms, rising rate cut expectations and fall in international oil price also played a positive role.
Shares from realty, metal, auto, IT, oil & gas and FMCG sectors were in good demand while some of the shares from pharma and banking segments attracted profit-booking.
The BSE 30-share barometer resumed strong but declined to a low of 26,971.16 before bouncing back to settle at over five-week high of 27,098.17, a rise of 217.35 points or 0.81%.
On Tuesday, Sensex had gained 127.92 points or 0.48%. It has now spurted by 1,196.98 points, or 4.60%, in seven out of last eight sessions.
The broad-based 50-issue CNX Nifty of the NSE also flared up by 62.85 points, or 0.78%, to end at 8,090.45.
Both indices are at their highest closing peaks since September 22.
Smart rise in Infosys, Tata Motors, RIL, ITC, TCS, Tata Steel, Hindalco, M&M, Maruti Suzuki, Sesa Sterlite, Bajaj Auto and Cipla mainly contributed to Sensex rise.
"We expect a highly volatile session on Thursday. First, we shall be seeing participants reacting to the Fed meeting outcome in early trade followed by the F&O expiry," said Jayant Manglik, President-retail distribution, Religare Securities.
All eyes are now set on the US Federal Reserve's meeting which is expected to end its bond-buying programme but reaffirm its willingness to wait before raising interest rates, experts said.
In overseas markets, Asian stocks closed strong on rally on Wall Street yesterday on optimisim about earnings and economic data in the US.
Key Asian indices like China, Hong Kong, Japan, South Korea, Taiwan and Singapore ended higher in the range of 0.81% and 1.84%. European stocks were also trading higher before Federal Reserve policy meeting outcome.
Key indices in France, Germany and UK moved up by 1.74% to 2.12%.
Turning to the domestic market, 21 scrips out of the 30-share Sensex pack ended higher while nine others ended lower.
Major gainers from the Sensex pack include Hindalco (5.95%), Tata Steel (4.60%), Tata Motors (3.41%), Infosys (2.25%), Sesa Sterlite (2.12%), Bajaj Auto (1.88%), Reliance Industries (1.85%), M&M (1.77%), Maruti (1.74%), Cipla (1.57%), ITC (1.16%) and TCS (0.98%).
However, Dr Reddy's Lab fell by 1.11%, followed by Sun Pharma 1.11%, NTPC 0.85%, Bharti Airtel 0.81% and SBI 0.52%.
Among the S&P BSE sectoral indices, Realty rose by 2.97%, followed by Metal 2.63%, Auto 1.79%, IT 1.47%, Teck 1.31%, FMCG 1.23%, Oil&Gas 1.19% and Consumer Durable 1.03%.
Total market breadth continued to remain firm as 1,610 stocks finished in green, 1,355 stocks ended in red while 109 Total turnover rose further to Rs 2,869.03 crore from Rs 2,763.91 crore on Tuesday.