The Bombay Stock Exchange benchmark Sensex on Monday surged by over 372 points, steepest advance in
more than two weeks, on brisk buying as investors judged the recent fall an overdone amid a firming Asian trend.
The Sensex, which had plunged to two-month low in the previous week, bounced back and gained by 372.15 to 19,957.59, its biggest surge since November 4, backed by Reliance Industries, Infosys Technologies and leading financial stocks.
The broad-based National Stock Exchange index Nifty also rose by 119.70 points to 6,010 as investors viewed the recent correction in the markets as a good entry point for picking fundamentally strong shares.
European equities rallied in opening deals as investors welcomed the news that crisis-hit Ireland formally applied for a bailout from the debt crisis.
The heaviest-weighed on the Sensex, Reliance Industries advanced 1.53% to Rs 1,012.10, its biggest gain since November 4, on reports that the company restarted one of its crude distillation units and a coker at its Jamnagar refinery.
The second-heaviest Infosys spurted by 2.55% to Rs 3,042.10. The two stocks carry nearly 23% weightage on the benchmark.
In the 30-BSE index components, 27 stocks closed higher while three ended in negative zone.
The banking sector index gained the most by 2.64% to 14,066.42 as stocks of private lenders - HDFC Bank, ICICI Bank and HDFC Ltd recorded handsome gains.
The consumer durable index was second best performer by adding 2.59% to 6,623.42 followed by information technology sector index by 2.50% to 6,036.95. Tech index rose by 2.22% to 3,697.87.
The IT and tech sector shares were in demand following a weak rupee against the dollar on expectations of a higher revenue. The Indian software export get over 50% revenue from the U.S. and European markets.
The realty sector index rose by 2.01% to 3,237.24 as Lanco Infratech gained 2.11 per cent to Rs 65.40, its highest close since October 27 on reports the government selected seven companies including Lanco, to build 470 megawatt of solar power capacity.
As the buying activity spilled over a wide-front, smallcap sector index rose by 1.46 per cent to 10,387.24 and midcap index by 1.28% to 8,180.48.