Tracking firm global cues, the benchmark BSE Sensex today closed at over two-month high of 27,470.81 by surging over 183 points — its fourth straight weekly gain — after ECB signalled more stimulus by the end of this year.
The index rising for the first time in three days also got a leg-up from the rupee, which appreciated against the dollar.
A strong closing at Asian markets and a higher opening in Europe after ECB chief Mario Draghi indicated that more rate cuts are on the table to prop up the euro zone economy buoyed sentiment here, brokers said.
The 30-share Sensex scaled the day’s high of 27,555.06, but took a hit from profit-booking in select blue-chips as it finally closed up 183.15 points, or 0.67 per cent, at 27,470.81, a level last seen on August 20.
The gauge had lost 77.26 points in the previous two sessions. Stock markets were closed yesterday on account of Dussehra.
The broader NSE Nifty after regaining the 8,300-level further rose to a high of 8,328.10, before settling at 8,295.45, a gain of 43.75 points, or 0.53 per cent.
On weekly basis, both Sensex and Nifty climbed 256.21 points (0.94%) and 57.30 points (0.69%), respectively, to log their fourth straight weekly rise.
ITC and Axis Bank emerged as top gainers in the Sensex pack by surging 2.81 per cent each.
The rally in the benchmark was also fuelled by gains in GAIL, NTPC, HDFC and ICICI Bank.
Of the 30 Sensex constituents, 20 ended with gains while 10, including Bharti Airtel, Vedanta Ltd and L&T, lost.
Among BSE sectoral indices, banking gained most jumping 1.30 per cent, followed by FMCG oil & gas and PSU.
The broader markets, however, were down as investors locked in gains in recent gainers. The BSE small-cap and the mid-cap indices fell 0.37 per cent and 0.26 per cent, respectively.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 48.33 crore on Wednesday, as per provisional data.
Among other Asian markets, China, Hong Kong and Japan indices firmed up to 2.1 per cent. Europe was also in a better form in early trade.