Sensex on Monday surged 266 points to close at nearly three-week high of 18,886.13 on heavy buying in metal, FMCG, oil & gas shares, amid firm global markets.
After rising nearly 652 points in last three days, the Sensex advanced further by 266.41 points, or 1.43 per cent to close at its highest level since 19,367.59 on August 14.
Brokers said easing crude oil prices might help in cooling inflation and trim the current account deficit of the country, which imports 80 per cent of its oil requirements.
A firming trend in the Asian region and higher opening in Europe after China’s manufacturing rose to a 16-month high, boosted the domestic market sentiment, they added. Nifty added 78.95 points, or 1.44 per cent, to 5,550.75, after touching day’s high of 5,564.90 and a low of 5,478.85.
Meanwhile, rupee ended two days of gains to fall by 30 paise to close at 66 against the dollar today on demand from importers as the US currency strengthened.
The rupee’s decline, amid capital outflows and data showing slowing economic growth, was restricted by a rise in local equities, a forex dealer said.