Sensex closes above 20k first time in two years

The Sensex gained 75.01 points, or 0.38 per cent, to close at 20,039.04, a level last seen on January 6, 2011. The gauge had surged 146 points in the previous session.

The broad-based National Stock Exchange index Nifty rose by 25.20 points, or 0.42 per cent, to 6,064.40, after touching the day's high of 6,083.40.

The oil and gas sector index gained the most by 3.03 per cent to 9,571.03 as the trend-setter oil major Reliance Industries climbed 1.05 per cent to Rs 898.95 and Bharat Petroleium surged 9.64 per cent to Rs 434.05. Indian Oil spurted by 10.46 per cent to Rs 348.95, Oil India by 8.95 per cent to Rs 561 and ONGC by 7.31 per cent to Rs 337.50.

Buying activity was more confined to oil companies after the government move to raise diesel prices in an efforts to curb fuel subsidies and narrow the budgetary deficit.

Besides, a firming trend in Asia and higher opening in Europe on report of Chinese economy accelerating for the first time in two years and US housing sales jumped to four-year high further supported the uptrend.

In 30-BSE index kitty stocks, 16 stocks gained while 14 ended with losses.

Among other gainers, NTPC, GAIL, Maruti Suzuki, ICICI Bank, HDFC Ltd, ITC, Tata Power and State Bank of India rose upto 4.59 per cent on increased investment buying.

ITC reported a 20.62 per cent rise in net profit to Rs 2,051.85 crore for the third quarter ended December 31, 2012, on the back of robust sales in cigarettes, agri and paper businesses.

Private sector HDFC Bank posted a 30 per cent jump in net profit at Rs 1,859.07 crore for the October-December quarter of the current fiscal, mainly on account of increased loan book.

The upsurge in the market capped as IT sector declined led by Wipro losing 7.88 per cent to Rs 397.15 even as the company reported 18 per cent rise in its consolidated net profit for the third quarter ended December 31, 2012.