Stocks rebounded sharply after a short-term breakdown after a hectic short covering-led relief rally even as rupee recouped from their multi-month lows on deferral of rate hike by the US Fed.
It sent the broader 50-share CNX Nifty rallying by a healthy 129.50 points or 1.61 per cent to conclude at 8,159.30 on the National Stock Exchange (NSE).
Domestic sentiments were also aided by the Cabinet's approval of a bill on a nationwide goods and services tax (GST).
Financial markets around the globe heaved a sigh of relief after the dovish Federal Reserve signaled in its post-meeting statement that it would be "patient" about the timing of the first rate hike, reassuring that rate rises are not imminent.
The intial buoyant momentum was maintained throughout the session despite strong profit-taking in the late morning trade.
Frontline infrastructure stocks spearheaded the relief rally amid hopes of speeding up regulatory approvals for large stalled infrastructure projects, with the CNX Infra surging 2.84 pct. This followed by Bank 2.58 pct, Auto 2.24 pct, Metal 2.08 pct, Realty 2 pct, Energy 1.67 pct, Healthcare 1.21 pct and FMCG 1.16 pct.
While, the broader indices outperformed benchmarks with midcap and small-cap rising over three per cent.
ICICI Bank, L&T, Infosys, HDFC Bank, Axis Bank, Tata Motors, Reliance, SBI, ITC, Maruti, HDFC, BHEL, Cipla, NTPC, TCS, Gail, Bank of Baroda, TechM, Lupin, Hindalco, Bharti Airtl, Zee, Cairn, Asian Paints, IndusInd, Bajaj Auto, Tata Steel, Tata Power, ONGC and Jindal Steel were among the major contributors to recovery.
The notable losers included Grasim, M&M, Ultracemco, HUL and Coal India.
Turnover in the cash segment fell to Rs 16,508.72 crore from Rs 20,021.37 yesterday. A total of 8,091 lakh shares changed hands in 74,34,791 trades, while market capitalisation stood at Rs 93,53,080 crore.
