The Sensex and Nifty rose over 1 percent in trade today following gains in auto, metals and banking stocks amid unabated buying by domestic institutional investors and rupee recovery.
While the Sensex was trading 444 points or 1.30% higher at 34,744 level, the Nifty gained 147 points or 1.44% to 10,447.
The rupee recovered 23 paise from its all-time lows to trade at 74.16 against the US dollar, supporting equity market sentiment.
Brent crude oil price, which approached $85 per barrel yesterday and put pressure on the Indian currency, fell back to $84.78 per barrel.
Yesterday, the crude rate went up to $84.86 per barrel pushing the Indian currency to its all-time closing low of 74.39 to the dollar.
Top Sensex gainers were Maruti (4.45%), Axis Bank (3.47%) and Vedanta Ltd (3.28%).
Wipro (2.89%), Infosys (2.07%) and TCS (1.11%) were the top Sensex losers as rupee attempted to rise above 74 level in early trade.
BSE mid cap and small cap indices rose 3.49% and 2.91% to 14,181 and 13,895 levels, respectively.
Banking and consumer durables stocks led the gains with the BSE bankex rising 2.42% or 662 points and consumer durables index soaring 2.97% or 485 points.
Auto and capital goods indices also rose 2.56% and 2.97%, respectively sending the benchmark indices higher.
There was continued buying by domestic institutional investors (DIIs) as well as select purchases by retail investors, traders said.
Besides, RBI's decision to inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet festive season demand for funds also boosted the sentiment here, they added.
Prominent gainers on the BSE were Hero MotoCorp, ONGC, Vedanta, Bajaj Auto, Tata Motors, Bharti Airtel, Maruti Suzuki, Kotak Bank, RIL, Tata Steel, Axis Bank, Sun Pharma, HDFC Ltd, L&T, Coal India, SBI and ICICI Bank, rising up to 2.87 per cent.
Market breadth was positive with 1826 stocks rising compared with 496 falling on the BSE.
Meanwhile, DIIs bought shares worth a net of Rs 1,526 crore, while foreign institutional investors (FIIs) pulled out a net Rs 1,242 crore Tuesday, as per provisional stock exchange data.
Global markets
Asian shares were mixed in muted trading Wednesday amid continuing worries about trade tensions and slowing global economic growth.
Japan's benchmark Nikkei 225 slipped 0.2 percent to 23,414.43 in early trading, while Australia's S&P/ASX 200 inched up nearly 0.1 percent to 6,045.00.
South Korea's Kospi lost 0.9 percent to 2,234.50. Hong Kong's Hang Seng added o.5 percent to 26,298.74, while the Shanghai Composite fell 0.2 percent to 2,716.91.
The Dow Jones industrial average fell 56.21, or 0.2 percent, to 26,430.57, and the Nasdaq composite added 2.07, or less than 0.1 percent, to 7,738.02.