The benchmark Sensex of the Bombay Stock Exchange on Monday shot up 325 points, or 2%, to 16,557.23 on firm global cues as fears of a eurozone debt crisis receded with Germany and France agreeing to support European banks.
“Investors are pinning their hopes on positive developments happening in the eurozone,” said Alex Mathew, research head, Geojit BNP Paribas Financials.
German Chancellor Angela Merkel and French President Nicolas Sarkozy promised last evening to unveil new measures to solve the debt crisis by the end of the month.
The Nifty of the National Stock Exchange also ended up 92 points, or 1.9%, at 4979.6.
Real estate, consumer durables, automobile and banking segments attracted heavy buying. Infotech counters too were in demand ahead of IT bellwether Infosys result announcement on Wednesday.