The S&P BSE Sensex and NSE Nifty 50 indexes extended gains in noon deals on the back of a broad-based buying interest. The benchmarks staged a gap up opening and extended gains led by rally in Reliance Industries, HDFC, Bajaj Finance, ICICI Bank, Kotak Mahindra Bank, ICICI Bank and Larsen & Toubro. The Sensex surged nearly 900 points and Nifty 50 index reclaimed its important psychological level of 14,500 and were on track to snap their two-day losing streak.
As of 2:42 pm, the Sensex was up 851 points at 49,415 and Nifty 50 index advanced 239 points to 14,520.
Sustained buying by foreign institutional investors and hopes of bold economic reforms in the upcoming Budget is leading to the bullish sentiment on Dalal Street, analysts said.
Buying was visible across the sectors as all the 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Realty index's over 4 per cent gain. Nifty PSU Bank, Metal, Media, Financial Services, Auto, Bank and Private Bank indices also rose between 1-2.5 per cent each.
Mid- and small-cap shares were also witnessing buying interest as the Nifty Midcap 100 index rose 1.8 per cent and Nifty Smallcap 100 index climbed 1.6 per cent.
Bajaj Finserv was top Nifty gainer, the stock rose 5 per cent to Rs 8,757. Bajaj Finance, Grasim Industries, Tata Motors, Larsen & Toubro, Adani Ports, Asian Paints, Reliance Industries and JSW Steel were also among the gainers.
On the flipside, ITC, Tech Mahindra and Britannia Industries were among the notable losers.
Among the individual shares, Indiabulls Real Estate rose as much as 12 per cent after the company informed exchanges that its profit in October-December period jumped 64 per cent annually to Rs 80.60 crore from Rs 49.20 crore during the same quarter last year.
The overall market breadth was extremely positive as 2,053 shares were advancing while 737 were declining on the BSE.