Indian benchmark indices were up for the second consecutive trading session. The BSE Sensex was up two per cent (325 points) and closed at 16,557.23.
NSE’s Nifty was also up 1.87 per cent (91.55 points) and closed at 4,979.60.
Experts attributed the rise to short-covering and buying in stocks whose valuations had turned attractive.
“There is perception in the market that the RBI rate hikes are over for now and with France and Germany coming together to tackle recession fears in Eurozone, there was widespread buying in rate sensitive index stocks,” said a dealer of an Indian brokerage.
All the indices on the BSE and NSE were in the green and India Vix, the volatility index, shed 9 per cent to close at 30.03.
Tata Motors, Sesa Goa, Tata Power, DLF and IDFC were the top gainers of the Nifty while Maruti, Jindal Steel, Sun Pharma, Cipla and Siemens were the top losers.