The Sensex ended the day with a gain of 188 points, while the Nifty ended the day with gain of 15 points. Among the shares that saw smart gains in trade today was BHEL, which rallied more than 5% on hopes that the reform measures would benefit the company.
Shares of petroleum refining companies were also in the limelight on falling crude prices and sharp gains in the rupee. PSU refiners BPCL and HPCL closed the day higher by more than 4%.
Shares of insurance service providers rallied with Max India, Reliance Capital and Bajaj Finserv among the gainers on reports that the Cabinet will clear the hike cap on foreign direct investment in the insurance sector today.
Kingfisher Airlines continued to plunge on continuing labour dispute with the stock down another 5% in trade today.
IT stocks were subdued for most of the day with the stocks in the sector ending almost flat, as rupee gains are likely to affect performance of these companies.
Meanwhile, shares in Asia ended the day higher with the exception of the Korean Kospi and the Singapore Strait Times.
Indian markets are expected to rally further as the government continues to provide a fresh impetus to reforms.