Mumbai: The BSE benchmark index on Wednesday gained 131.06 points to close at 18,460.38 points on expectations that the government will take more reform measures to support the economy in the winter session of Parliament which is starting on Thursday.
A bout of volatility was witnessed in early trade and key benchmark indices slipped into the red as euro-zone finance ministers failed to reach an agreement on conditions to release the next tranche of financial aid for Greece.
However, buying by funds in realty, FMCG, consumer durables and banking stocks lifted the market with sectoral indices posting gains between 1.27 percent and 2.47 percent.
"Recovery was supported by value buying in some of the heavyweights like Reliance Industries, ICICI Bank, HDFC Bank and Cipla which contributed to the overall gains," Nidhi Sarswat-Sr.Research Analyst-Bonanza Portfolio, said.
Brokers said the government is expected to take more reform measures, including placing of bills regarding insurance and pension sectors, in the winter session of Parliament starting tomorrow, which lifted the markets.
Some short-covering was also seen ahead of expiry of derivatives contract on November 29, pushing the BSE benchmark Sensex up, they added.
The NSE 50-share Nifty also firmed up by 43.25 points or 0.78 percent to close at 5,614.80 points.
Persistent capital inflows from foreign funds into equity market also boosted the market sentiment, brokers said.
Private banks ICICI Bank and HDFC Bank gained up to 2 percent as Banking Laws Amendment Bill, 2011, which seeks an increase in the voting rights of large shareholders in private banks to 26 percent from 10 percent, will be tabled in the winter session.
Heavyweight Reliance Industries rose by nearly 1 percent, while IT major Infosys gained over 1 percent.
After falling for last two weeks, Nifty has shown some positive trend in today?s session. It has also closed above 5610 which is positive in near term, Sarswat said.
"Investors shall be looking for global cues and other post-reforms actions within the country for further market direction," she added.
Asian stocks ended higher in choppy trade today. Key benchmark indices in China, Singapore, Hong Kong and Japan were up 0.05 percent to 1.39 percent.
European stocks declined in their afternoon trade after euro-zone ministers failed to agree on conditions to release the next tranche of aid for Greece. Key benchmark indices in France, Germany and the UK were down up to 0.11 percent.
Back home, 19 out of 30 Sensex-based scrips closed with gains. Cipla was the top gainer with a rise of 2.61 percent after pharma major said that it has made a USD 220-million offer to acquire 51 percent stake in South African firm Cipla Medpro.
Tata Power rose by 1.98 percent, Jindal Steel by 1.97 percent and FMCG major ITC by 1.96 percent.
IT company Wipro gained 1.35 percent, Hindalco 1.23 percent, Gail India 1 percent, L&T 0.93 percent and Tata Steel 0.86 percent.
However, NTPC dropped by 3.46 percent, BHEL by 2.70 percent and Hero MotoCorp by 1 percent.
The market breadth turned positive as 1,487 stocks ended in the green while 1,362 that settled in the red.
The total market turnover was a bit lower at Rs 1,954.27 crore from Rs 1,958.06 crore on Tuesday.
Meanwhile, Foreign institutional investors (FIIs) bought shares worth a net Rs 143.38 crore Tuesday as per provisional data from the stock exchanges.