The Sensex and the Nifty surged in trade on hopes of reform measures to be initiated by the government with the Sensex and the Nifty hitting new lifetime peaks.
Today's rally was despite the US Fed sounding more hawkish and despite the complete winding down of the US Fed's QE3 programme.
Tech stocks led the rally in trade with stocks like Infosys, TCS, HCL Tech and Wipro among the gainers. But, the clear winner from the space was Tech Mahindra which rallied after the company reported a super set of Q2 numbers.
Private sector banking stocks surged in trade with IndusInd Bank, Yes Bank and ICICI Bank hitting new lifetime peaks on the NSE.
Realty stocks were also in the limelight after the government liberalised FDI for the sector. Stocks like DLF, HDIL and Unitech saw sharp rally in their share prices.
Jindal Steel which had been hammered down in the last few trading sessions ended the day higher. Today, was the last day of expiry for the October F&O series.
Meanwhile, markets in Europe were trading lower led by losses in the German DAX and the UK's FTSE.