Benchmark equity indices Sensex and Nifty on Tuesday spurted by over 2.5% to log their best single-day gains in three months, propelled by heavy buying in metal, energy and banking stocks amid a global rally in stocks.
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The 30-share BSE benchmark zoomed 1,344.63 points or 2.54% to settle at 54,318.47 points with all of its constituents closing with gains. During the day, it jumped 1,425.58 points or 2.69% to 54,399.42.
The broader NSE Nifty rallied 417 points or 2.63% to finish at 16,259.30 points. All the 50 stocks advanced led by steel and energy stocks.
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Both Sensex and Nifty logged their best single-day gain since February 15.
Tata Steel, Reliance Industries, ITC, Larsen & Toubro, Wipro, ICICI Bank, HCL Technologies and Maruti were the major gainers among Sensex stocks.
"A ferocious up-move from the metal index lifted Reliance together with other sectoral indices leaving bears gasping and covering short positions and looking out for reasons for the rally," S Ranganathan, Head of Research at LKP securities said.
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On a day when WPI for April crossed 15%, over 2.5% rise in benchmark indices coupled with the breadth of the rally surprised many on the street despite the move coming after a relentless fall, Ranganathan added.
Asian markets in Hong Kong, Seoul, Tokyo and Shanghai ended higher on expectations of easing of COVID-19 related restrictions by China as the number of cases declined.
Equity exchanges in Europe were trading in the green in the afternoon session.
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Stock exchanges in the U.S. had ended on a mixed note on Monday.
The country's largest insurer LIC on Tuesday made a lacklustre debut on stock exchanges, listing at over 8% discount after a successful initial public offering (IPO) which fetched ₹20,557 crore to the exchequer.
In the previous trade, the BSE benchmark gained 180.22 points or 0.34% to settle at 52,973.84 points. The Nifty went up by 60.15 points or 0.38% to finish at 15,842.30 points.
Meanwhile, international oil benchmark Brent crude gained 0.49% to $114.8 per barrel.
Foreign institutional investors continued to offload shares worth ₹1,788.93 crore on Monday, according to stock exchange data.