BSE Sensex zoomed nearly 241 points to close at two-month high of 27,140.41 and NSE Nifty broke the crucial 8,300-mark on widespread gains following sustained buying by participants amid encouraging start of the corporate earnings season.
A better closing at other Asian markets and a mixed trend at European bourses in their early trade too influenced sentiments.
Brokers said market has regained its strength as DIIs continue to pour into the domestic market, helping the key indices to recapture their respective key levels.
Besides, investors widened their bets on optimism that upcoming general budget -- to be unveiled next month – would contain a series of incentives for corporates to help boost the economy, they added.
The 30-share Sensex resumed higher at 26,978.44, quickly breached the 27,000-mark to hit a high of 27,174.87 before winding up at 27,140.41, scoring a notable rise of 240.85, or 0.90 per cent. The Sensex had closed at 27,517.68 on November 10 last year.
The NSE Nifty also climbed 92.05 points, or 1.11 per cent, to end at 8,380.65 after trading between 8,389 and 8,322.25. (the key index had closed at 8,525.75 on November 10, 2016).
Stocks of IndusInd Bank on Wednesday surged 6.16 per cent to close at Rs 1,233.45 after the company reported a 29 per cent surge in its December quarter net profit.
As per provisional data release by the stock exchanges, Domestic institutional investors (DIIs) bought shares worth a net Rs 253.36 crore yesterday, while foreign portfolio investors (FPIs) sold shares worth a net Rs 21.20 crore.
Among the sectoral indices, metal climbed 4.42 per cent, bankex 2.40 per cent, PSU 1.72 per cent, capital goods 1.39 per cent, power 1 per cent, auto 0.95 per cent, healthcare 0.76 per cent, consumer durables 0.67 per cent, oil & gas 0.47 per cent and realty 0.13 per cent.
The BSE Mid-Cap index and the BSE Small-Cap index both gained by 1.37 and 0.98 per cent, respectively.
Out of 30-index stocks, 23 scrips ended with gains, while 7 registered loss.
Globally, Asian stocks ended higher with Japan's Nikkei rising 0.33 per cent, while Hong Kong's Hang Seng gained 0.84 per cent, while among European markets, London FTSE was up 0.18 per cent, Frankfurt rose 0.07 per cent, while Paris gained 0.03 per cent.