The Sensex and Nifty hit their highest close in last five weeks, with BSE Sensex reclaiming 27,000-mark and Nifty inching closer to 8,100-level buoyed by a rally in global markets on expectations of US Federal Reserve's policy outcome.
Besides, hopes of further economic reforms by Modi Government, rising rate cut expectations and fall in international oil price too buoyed sentiments. According to market experts the rollover and short-coverings ahead of expiry also boosted the trading sentiments.
Shares of Hindalco rose by 5.95 per cent, Tata Steel gained by 4.60 per cent, Tata Motors and Infosys increased by 3.41 per cent and 2.25 per cent respectively. 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.
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, market experts said.
The breadth of the market was positive with BSE Midcap and Smallcap indices inching higher. Sectorwise, BSE Realty index gained the most by rising 2.97 per cent, followed by Metal index gaining by 2.63 per cent, Auto index rose by 1.79 per cent, IT index increased by 1.47 per cent, FMCG index gained by 1.23 per cent and Oil & gas index increased by 1.19 per cent.
However, Dr Reddy's laboratories closed down 0.81 percent after its earnings missed some analysts' expectations.