The BSE benchmark Sensex regained psychological 21,000 level after a gap of nearly three years by surging 262 points in morning trade today on heavy funds inflows in fundamentally strong sectors such as realty, banking and oil & gas.
The 30-share index, which had lost over 126 points in two sessions, bounced back by 262.02 points, or 1.26 per cent, to Rs 21,029.90, a level last seen in November 2010.
The wide-based National Stock Exchange index Nifty rose by 67.40, or 1.09 per cent to 6,245.90 points.
Brokers said sentiments turned buoyant on heavy buying by foreign funds in blue-chips led by realty, banking and oil and gas sectors stocks available at attractive lower levels following two days of losses.
Major contributers are Reliance industries, Infosys, ITC, State bank of india and Tata steel.