The BSE Sensex on Thursday
regained 19,000-level after nearly two months by surging 329 points on heavy buying over optimism that government will push through economic reform initiatives.
Global investment bank
Goldman Sachs upgrading India also boosted sentiments.
Brokers said investors appeared confident that the UPA government will excel in a trial of strength over foreign direct investment (FDI) in retail issue to be witnessed in Parliament next week.
The Lok Sabha has
decided to have a discussion on December 4 and 5 on the issue under a rule that entails voting.
After rising to a day's high of 19,205.33, the 30-share index of the Bombay Stock Exchange closed with a gain of 328.83 points, or 1.75 per cent, at 19,170.91.
This is the third straight day the benchmark has gained.
"Markets rose sharply for the second successive day...We touched new calendar year highs during the day. Markets have started factoring in some further announcements on fiscal reforms with the
deadlock on retail FDI issue being resolved and discussion expected to happen next week," said Dipen Shah, Head of PCG Research, Kotak Securities.
In the Sensex, 26 stocks closed with gains, led by Bajaj Auto, ICICI Bank, Tata Motors, Cipla and Sterlite. L&T, HDFC, HDFC Bank, Reliance Industries and ITC also helped cement the index's gains.
Across the BSE, over 1,680 stocks gained on Thursday, helping the market cap zoom to Rs 66.74 lakh crore, up Rs 80,000 crore in a single session.
A smooth ending of the current month's settlement in the derivative segment and a higher global trend - as optimism grew that US President Barack Obama will reach an agreement with Congress over a new budget - further influenced the sentiment.
The 50-share National Stock Exchange index Nifty closed 97.55 points, or 1.70 per cent, higher at 5,825.
S&P CNX Nifty Index may rise 14 per cent by 2013-end, Goldman Sachs Group Inc said in a report on Thursday, upgrading its recommendation on India to overweight from market-weight.
"For India, upside drivers include a recovery in growth, a decline in inflation, and the potential for continued policy reforms," Goldman Sachs said, adding that with structural issues being addressed and a cyclical recovery on the horizon, the market may bounce strongly next year.
With inputs from PTI
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