The Sensex and Nifty closed higher for the third consecutive session buoyed by a surge in global markets with banking and consumer durables stocks lending support to the benchmark indices.
While the Sensex closed 269 points higher at 36,076, Nifty ended 80 points in the green at 10,859.
Earlier in the day, the Sensex rose 325 points to 36,126 and the Nifty gained 97 points to 10,877.
Sun Pharma (2.98%), Bajaj Finance (2.13%) and Vedanta (1.76%) were the top Sensex gainers.
Top Sensex losers were TCS (O.71%), Bajaj Auto (0.47%) and Bharti Airtel (0.05%).
The government's plan to infuse Rs 28,615 crore into PSU banks boosted shares of financial services companies on hopes that the recapitalisation would ease liquidity concerns for NBFCs and HFCs.
Top sectoral gainers were consumer durables stocks with the BSE consumer durables index rising 432 points to 20,552. The BSE bankex (303 pts) and BSE capital goods index (195.64 pts) were the other major sectoral gainers.
Bank Nifty rose 246 points to 27,125. On the other hand, telecom stocks index was the sole sectoral loser with the BSE telecom index falling 0.79 points to 995.90 level.
The Lemon Tree Hotels stock closed 8.50% higher today after the hospitality firm said it has formed a joint venture (JV) with an arm of global private equity firm Warburg Pincus to develop rental housing projects envisaging investments of Rs 3,000 crore over a period of time.
The midcap stock opened with a gain of 12.14% at 77.15 level today against the previous close of 68.80 on the BSE.
Shares of Ashoka Buildcon rose nearly 2 per cent in early deals today after the road infrastructure company said that its board has approved the allotment of 1,500 un-secured, redeemable, listed, non-convertible debentures, worth Rs 150 crore. ge.
Following the announcement, shares of the company gained as much as 1.60 per cent to touch an intra-day high of Rs 126.40 apiece on the BSE, after opening marginally higher at Rs 124.90, against previous closing price of Rs 124.40. The stock closed 0.08 percent higher at 124.50 on the BSE.
Meanwhile, the BSE mid cap and small cap indices closed 141 points higher to 15,360 and 123 points higher to 14605 level in trade today. Market breadth was positive with 1588 stocks closing higher compared to 1050 falling on the BSE.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 1731.91 crore on Thursday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 663 crore, provisional data available with BSE showed.
On Thursday, the Sensex and Nifty closed higher tracking rally in global stocks as US markets posted their best single-day gain in more than 10 years.
However, the indices could not hold on to their morning gains on account of December derivatives expiry. While the Sensex closed 157 points higher to 35,807, Nifty ended 50 points in the green at 10,779.
Most global stock markets advanced Friday while Japan edged down following Wall Street's rally after a turbulent week.
In early trading, Germany's DAX rose 0.7 percent to 10,454.51 points and France's CAC 40 advanced 0.7 percent to 4,627.44. London's FTSE 100 added 0.1 percent to 6,655.09. On Thursday, the DAX slid 2.4 percent, the FTSE 100 gave up 1.5 percent and France's CAC 40 gave up 0.6 percent. On Wall Street, the future for the Standard & Poor's 500 index declined 0.1 percent and that for the Dow Jones Industrial Average lost 0.3 percent.
The Shanghai Composite Index advanced 0.4 percent to 2,493.90 while Tokyo's Nikkei 225 shed 0.3 percent to 20,014.77. Hong Kong's Hang Seng ended up 0.1 percent at 25,504.20 and Seoul's Kospi added 0.6 percent to 2,041.04.
The S&P 500 rose 0.9 percent, the Dow gained 1.1 percent and the Nasdaq composite added 0.4 percent. The downturn that began in October has intensified this month, erasing the market's 2018 gains and nudging the S&P 500 closer to its worst year since 2008. Stocks are on track for their worst December since 1931.
Edited by Aseem Thapliyal