Sensex surges 327 points to 8-week high on all-round buying

Besides, the Finance Ministry has proposed a monetary limit for invoking the controversial General Anti-Tax Avoidance Rules (GAAR) in its draft guidelines issued late last night buoying trading sentiment, brokers said.

The guidelines said that GAAR provisions would be invoked only in cases where FIIs choose to take the benefit of double tax avoidance treaties, providing some relief to funds, they added.

Besides, the rupee appreciated by 25 paise to 56.55 against the US dollar at the Interbank Foreign Exchange market on hopes that the government steps will check the currency's slide, aiding market sentiment.

Capital goods, banking, power, FMCG, auto, realty, healthcare and consumer durables stocks gained sharply.

The BSE 30-scrip index resumed higher at 17,134.61 points and shot up further to 17,348.06, before quoting at 17,318.01 at 1030 hrs, a sharp gain of 327.25 points or 1.93 per cent from its last close.

The NSE 50-share Nifty also shot up by 100.10 points or 1.94 per cent to 5,249.25 at 1030 hrs.

Major gainers were Sun Pharma (3.20 pc), Tata Power (3.18 pc), ICICI Bank (3.15 pc), L&T (3.07 pc), Maruti (3.04 pc) and M&M (3.02 pc).

Asian shares surged after late Thursday night meeting of European leaders that came up with a plan for a single financial supervisory mechanism for the European region to help stabilise markets.

Key benchmark indices in Singapore, South Korea, China, Taiwan, Hong Kong and Indonesia gained up to 1.95 per cent, although Japan's Nikkei 225 was marginally down.