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Extending gains for the second straight session, the benchmark indices on Wednesday surged to their two-month highs tracking positive trade in Asian markets ahead of US President-elect Donald Trump's news conference later in the day that will give an initial insight into his policies.
The S&P BSE Sensex reclaimed its crucial 27,000 level, while the broader Nifty50 jumped above its key 8,350-mark.
At 02:30 pm, the Sensex was trading at 27,103, up 204 points, while the Nifty50 was ruling at 8,366, up 76 points.
The broader markets outperformed the headline indices with BSE Midcap and BSE Smallcap indices adding 1% each.
Market breadth depicted strength. There were nearly two gainers against every loser on the BSE. 1,648 shares rose and 854 shares declined. A total of 141 shares were unchanged.
Trump's plan for tax cuts and infrastructure spending has boosted US shares but his protectionist statements during the election campaign have kept many investors guessing.
Back home, investors were also growing hopeful that Budget 2017 to be unveiled on February 1 would contain incentives for companies to help prop up an economy being hit by a ban on higher-value cash notes.
Investors also await the key quaterly corporate results from software services firm TCS and Infosys. The IT giants will report their December quarter earnings on Thursday and Friday, respectively. Stocks of both firms were trading lower today.
Shares of metal companies were in focus with the Nifty Metal and S&P BSE Metal index hitting their respective 52-week highs after China's top steelmaking province said to further reduce production capacity.
JSW Steel, Tata Steel, Hindalco Industries, National Aluminium Company (Nalco), Coal India, Jindal Steel & Power (JSPL), Steel Authority of India (SAIL), NMDC and Bhushan Steel from the metal index were up between 2% to 6%.
Banking stocks rallied with BSE Bankex gaining over 2%. Indusind Bank (up 5%) was the top gainer on the index after the bank reported a healthy 29% year on year growth in net profit at Rs 751 crore for the third quarter ended December 31, 2016 (Q3FY17). The private sector lender had profit of Rs 581 crore in the same quarter last fiscal.
Suzlon Energy rose 3% after the company said it secured a 226.80 megawatt contract from an independent power producer.
(With inputs from Reuters)
