The Sensex and the Nifty ended the day higher led by a surge in Larsen and Toubro and heavyweights, ICICI Bank, HDFC and HDFC Bank. The Sensex ended the day higher by 467 points, while the Nifty rallied 132 points in trade.
The other set of gainers from the Nifty were Gail and ONGC. Tech major Infosys also ended the day higher after reports that a SAP board member could take over as the CEO of the company.
Shares in Aurobindo Pharma ended the day with losses despite the company reporting a healthy set of profits. The action once again shifted to the broader markets with heavy buying support seen in select stocks. Gammon Infra, Gammon India and Suzlon were locked at the upper end of the circuit filter.
PSU banking stocks was once again where all the action was with stocks from the sector surging 5 to 10 per cent in trade. Notable winners were Indian Overseas Bank, Allahabad Bank Syndicate Bank and Andhra Bank.
Select mid caps also saw heavy buying support with CESC, India Cements, Jubilant Foods and Power Finance seeing gains of more than 5 per cent.
Among the Nifty stocks that lost ground in trade was HCL Tech, ITC, Sun Pharma, Tech Mahindra and DLF.
Meanwhile, markets across Asia rallied after Chinese data was reassuring and Wall Street hit record highs once again last week.