The benchmark BSE Sensex on Friday ended above the 20,000-mark for the first time in two years on continued buying in oil and gas stocks on the back of partial deregulation in diesel prices. The benchmark index rose 75 points, or 0.4%, to close at 20,039.
The Nifty of the National Stock Exchange also closed up 25.2 points, or 0.4%, at 6,064.
Indian Oil Corp, Bharat Petroleum Corp, Oil India, Oil and Natural Gas Corp and Indraprastha Gas, which rose by 10.5%, 9.6%, 8.9%, 7.3% and 5.6%, respectively, were the biggest gainers.
"On the back of global cues and measures taken by the government on fuel prices, the markets opened on a strong footing," said Sanjeev Zarbade, vice-president, private client group, research, Kotak Securities. "As a result of the government's move to deregulate diesel prices, oil and gas stocks caught the market's fancy."
"Markets have moved up over the past few months in anticipation of additional fund flows and of further reform initiatives from the government," he added.