Sensex surges 269 points, Nifty closes above 11,200

New Delhi: Markets closed higher on Thursday led by gains in index heavyweight amid hopes of fresh government stimulus to support the economy.

The 30-share BSE Sensex ended 268.95 points, or 0.71 per cent, higher at 38,140.47. Similarly, the NSE Nifty advanced 82.85 points, or 0.74 per cent, to close at 11,215.45.

Major gainers in the Sensex pack were Reliance Industries, SBI, ICICI Bank, Tech Mahindra, ITC, Kotak Bank, M&M, Bajaj Auto, Asian Paints, Bajaj Finance, Powergrid and Titan, rising upto 3.28 percent. On the other hand, Axis Bank, HUL, Infosys, TCS, L&T, Ultrachem, Bharti Airtel and HDFC finished in the red, falling upto 3.80 percent.

Some support also came with the Chief Economic Adviser's statement that the government may announce more fiscal measures to boost demand, Solanki added.

In the forex market, the rupee settled on a flat note at 74.75 against the US dollar.

In the previous session, the BSE barometer finished 58.81 points, or 0.16 per cent, lower at 37,871.52, and the Nifty slipped 29.65 points, or 0.27 per cent, to close at 11,132.60.

Foreign institutional investors were net buyers in the capital market on Wednesday, purchasing equities worth Rs 1,665.57 crore, provisional exchange data showed.