The Sensex and the Nifty rallied sharply in trade as investors lapped up banking and housing finance company stocks. The Sensex closed the day higher by 380 points, while the Nifty rallied 111 points in trade.
Leading the set of gainers were banking stocks, particularly the private sector banking stocks which rallied on hopes that the ongoing 2-day meeting of bank officials with the Prime Minister, Finance Minister and RBI Governor would lead to concrete steps.
Shares in SRF rallied a huge 6 per cent after the company said it has acquired Dupont's Dymel pharma propellant business for USD 20 million.
Spice Mobility on the other hand gained ground after the company said that it would consider voluntary delisting.
Shares in BHEL rallied after the company said that it had bagged a Rs 3810 crore EPC contract from Telangana State Power.
HDFC was the top gainer from the Nifty rallying a huge 4 per cent.
Meanwhile, markets in Europe were trading higher while most of Asia closed the day with gains. Monday will mark regular trading for most of the markets across the globe.