Benchmark equity indices gained for the second day, with financial services stocks contributing the most to advances, following U.S. Federal Reserve's decision to keep interest rates unchanged.
The NSE Nifty 50 ended 172.85 points, or 0.79%, higher at 22,011.95, while the S&P BSE Sensex was up 590.60 points, or 0.82%, at 72,692.29.
"Domestic market is taking cues from the global market, infusing optimism, as the Federal Reserve signalled to remain on track for three interest rate cuts this year, despite inflation staying above long-term target," said Vinod Nair, head of research at Geojit Financial Services Ltd.
Short-term traders are taking advantage of the oversold territory from the recent sell-off, he said.
Shares of HDFC Bank Ltd., ITC Ltd., Larsen & Toubro Ltd., NTPC Ltd. and Reliance Industries Ltd. contributed the most to gains on the Nifty.
While Bharti Airtel Ltd., ICICI Bank Ltd., HDFC Life Insurance Co., Maruti Suzuki India Ltd. and Oil and Natural Gas Corp. capped the upside.
All sectoral indices on the NSE ended higher, with most of them outperforming the benchmarks. Nifty Realty and Nifty Metal rose the most.
Broader markets outperformed benchmark indices. The S&P BSE Midcap ended up 2.36%, and the S&P BSE Smallcap closed 2.01% higher.
Mid, Small Cap Indices Outperform Benchmarks
On BSE, all 20 sectors ended higher, with the S&P BSE Power emerging as the top performer. The S&P BSE Teck was the worst performer.
Market breadth was skewed in the favour of buyers. Around 2,759 stocks rose, 1,063 stocks declined, and 104 stocks remained unchanged on the BSE.
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