The benchmark BSE Sensex rallied over 400 points and Nifty reclaimed the 8,400 level in mid-session trade Friday on across the board buying, led by banking, oil, metal and auto stocks.
Positive economic data amid hopes of more reforms fueled the buying by funds and retail investors, brokers said.
Stocks from midcap and smallcap companies also joined the rally along with key private financials like HDFC bank, ICICI and Axis Banks.
The Sensex resumed higher at 27,521.28 and surged to 27,911.98 points, a gain of 404.44 points or 1.47 percent over the previous close.
The 50-issue Nifty of NSE crossed the 8,400 level by rising over 118.50 points or 1.43 percent to 8,404.25.
An HSBC survey said that India’s manufacturing sector grew at its fastest pace in two years in December on strong orders flows from domestic buyers as well from abroad.
Also, Foreign portfolio investors (FPIs) bought shares worth a Rs 18.20 crore yesterday, as per provisional data available with stock exchanges.
Major gainers were, HDFC (3.97 percent), Tata Motors (2.88 percent), BHEL (2.72 percent), ICICI Bank (2.59 percent), Axis Bank (2.55 percent) and ONGC (1.67 per cent).
Asian stocks trading higher amid thin volumes following the New Year’s Day holiday.
Key benchmark indices in Singapore, Hong Kong, Indonesia and South Korea were up by 0.01 percent to 0.72 percent.
Stock markets in China, Japan and Taiwan are closed today for holiday.