Shedding its initial hesitancy, the benchmark Sensex surged by 165 points on the back of smart rally in banking and select blue-chip counters, amid a recovery in European markets.
Banking segment attracted good buying support on expectations of a rate cut by US Federal Reserve at its meeting late tonight, which might positively impact the local bourses, dealers said.
Moving in a range of 15,691.88 and 15,468.80, the Bombay Stock Exchange (BSE) 30-share barometer ended at 15,669.12, up by 164.69 points or 1.06 per cent over yesterday’s close of 15,504.43.
Similarly, the broad-based S&P CNX Nifty of the National Stock Exchange (NSE) recouped by 51.55 points or 1.15 per cent to close at 4,546.20 from previous close of 4,494.65.
The market got a boost at midsession after a smart recovery in European markets at opening. However, Asian indices ended steady to weak.
Heavyweights like RIL, Grasim, Bharti Airtel, REL, NTPC, Tata Steel, ONGC, M&M and L&T also attracted good buying and finished with smart gains.
Small-cap and mid-cap counters remained in the limelight on buying by retail investors.
Foreign institutional investors (FIIs) continued their buying spree. After pumping in Rs 1,715.40 crore last week, FIIs picked up shares worth Rs 94.34 crore (provisional) on September 17.
According to brokers, all eyes are now set on the outcome of the US Federal Reserve meeting.