Markets on Wednesday came out ot the shadow of Brexit and rallied nearly 216 points on the back of a string of Government measures aimed at reviving the economy and talk that the GST Bill may be passed in the upcoming monsoon session of Parliament.
Auto and retail stocks were the big movers after the Government approved implementation of the 7th Pay Commission for its employees and pensioners, which had recommended an overall hike of 23.5 per cent.
From the auto basket, shares of Hero MotoCorp rose by 3.95 per cent, while Tata Motors (1.53 per cent), Maruti Suzuki India (1.36 per cent), Bajaj Auto (0.71 per cent) and Mahindra & Mahindra (0.62 per cent) also gained on BSE.
led by the gains in these stocks, the BSE auto index went up by 1.51 per cent to settle at 19,473.01.
Among realty stocks, Unitech surged 7.85 per cent, DlF was up 7.83 per cent, Housing Development and Infrastructure ltd (3.01 per cent) and Sobha (2.83 per cent).
Omaxe rose by 1.89 per cent, Indiabulls Real Estate (1.48 per cent), Godrej Properties (1.16 per cent) and Oberoi Realty (1.03 per cent).
The BSE realty index went up by 3.15 per cent to settle at 1,497.06.
There was more upside in store after the Government on Wednesday asserted that it has "enough" numbers on its side for passage of the GST Bill in the monsoon session, which commences on July 18.
The Sensex stayed in the positive terrain throughout and closed up 215.84 points, or 0.81 per cent, at 26,740.39.
The 50-share NSE Nifty took back the crucial 8,200 level and ended the day at 8,204.00, a gain of 76.15 points, or 0.94 per cent -- its biggest single-session jump since June 15.
From the 30-share Sensex pack, 24 scrips ended higher and one remained unchanged.
Short-covering too helped as buying gathered pace after a firming trend in Asia, in line with overnight gains in the US, boosted by hopes that global policymakers will come up with strong measures and fresh stimulus to neutralise Brexit spillover.
Appreciation in the rupee gave more ammo to bulls, though caution prevailed ahead of Thursday’s monthly derivative expiry, dealers said.
Hero MotoCorp emerged as the top gainer, climbing 3.95 per cent on hopes that vehicle sales might pick up after the Government cleared 7th Pay panel recommendations.
Bajaj Auto, M&M, Maruti Suzuki and Tata Motors all advanced by up to 1.53 per cent.
NTPC too rose 2.36 per cent, followed by Wipro 2.21 per cent, Power Grid 2.60 per cent and TCS 1.54 per cent.
BSE realty topped the chart rising 3.15 per cent, with power racking up 1.66 per cent, auto 1.51 per cent and IT 1.39 per cent.
Broader markets too were in a bullish form, with BSE small-cap rising 1.31 per cent and the mid-cap up 0.98 per cent.
Foreign portfolio investors net sold shares worth Rs190.43 crore yesterday, according to provisional data.
Japan's Nikkei ended 1.59 per cent higher while Hong Kong's Hang Seng rose 1.31 per cent. The Shanghai composite index gained 0.65 per cent.
Europe was trading in the positive zone, with the london FTSE rising 2.16 per cent, Paris 2.25 per cent and Frankfurt 1.55 per cent.