Besides, Prime Minister Manmohan Singh's comments that he was confident of the UPA government numbers in Parliament aided market mood.
"Yes, we are confident of numbers," Singh told reporters after an hour-long meeting leaders of UPA which presented a united picture.
He was commenting on stalemate in Parliament over FDI issue leading to adjournment of Lok Sabha and Rajya Sabha for the fourth day in a row since the Winter Session began.
Buying was so strong that all the 13 sectoral indices closed with gains of 0.27-3.2 per cent. Of the BSE 30-stock index, Sensex, 28 scrips registered gains as only NTPC and ONGC closed with minor losses.
Sensex opened higher than the previous close and remained in the positive zone throughout before closing at 18,842.08 - up 305.07 points or 1.65 per cent.
The NSE 50-stock index, Nifty, shot up 91.55 points or 1.62 per cent to 2-month high of 5,727.45.
"Positive international cues and reaffirmation of stable outlook on India by Moody's sentimentally aided the rise in the markets," Inventure Growth & Securities, Head Research, Milan Bavishi said.
Moody's said today that the outlook on its Baa3 rating for India is stable, in part due to the country's high savings and investment rates.
Investor sentiment also got the boost following news that Greece's official creditors, including the International Monetary Fund (IMF) and European Union, have agreed on a deal to lower the country's debt burden. MORE
