The Bombay Stock Exchange benchmark Sensex on Tuesday surged to a five-week high, adding 277 points on buying by foreign funds amid indications that India may grow faster in the coming months and firm overseas markets.
The 30-stock Sensex, which had gained 152 points in the last two sessions, moved up another 276.69 points, or 1.71 per cent to 16,466.05 — the level of December 8.
The 50-scrip NSE index Nifty breached the 4,900 mark to close at 4,967.30 — up 93.40 points, or 1.92 per cent.
RIL and Infosys, the top two with heaviest weight on the Sensex, logged in strong gains and were up 3.78 per cent and nearly one per cent respectively.
Brokers said the trading sentiment was buoyed amid reports that the government may revise GDP growth to 8 per cent next fiscal.
The Budget should aim at raising the GDP growth rate to 8 per cent in 2012-13, from the expected 7 per cent in the current fiscal, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said in an interview.
Brokers said that after avoiding investments in the recent past, FIIs have been on a buying spree of late on hopes that Indian companies may perform better in the coming quarters amid signs that RBI will cut lending rates.
Besides, firm markets in Asia and Europe boosted investor confidence, they added.
IT stocks made gains, with HCLT gaining 4.61 per cent on announcing strong results for the October-December quarter.
The capital goods index rose 3.73 per cent to 9,843.66, followed by the metals index — up 3.66 per cent at 11,171.21.