The benchmark Sensex opened on a weak note at 26,574 against the previous close of 26,631. However, it reversed the trend and made a high of 27,132 and low of 26,503 before closing with a gain of 1.81 per cent at 27,112. The turnover on BSE was down at Rs. 3,532 crore against Rs. 3,900 crore recorded on Wednesday.
In NSE, the Nifty was up 139 points at 8,115. The BSE Small-Cap and Mid Cap indices outperformed the Sensex with a gain of 1.83 per cent and 2.69 per cent, respectively.
The US Federal Reserve at the end of a two-day policy meeting on Wednesday maintained its commitment to keep the US interest rates near zero for a “considerable time” against the market expectations of marginal increase in rates.
Low interest rates in the US have triggered large inflow of dollars into emerging markets, including India. The Fed has kept its short-term interest rate near-zero since December 2008.
The Indian and Chinese governments signed a five-year trade and economic co-operation pact and a railway co-operation pact on the back of three-day visit by the Chinese President Xi Jinping.
Many second lines IT stocks joined the rally along with big caps.
Some of mid-cap that rallied include Rs.Software (up 20%), Polaris Financial Technology (up 14%), Rolta India (up 9%), Accelya Kale Solutions (up 7%), Zensar Technologies (up 8%), and Blue Star Infotech (up 5%).
The major gainers were Unitech (13%), HDIL (9%), Adani Power (8%), Indian Hotel (8%), Ashok Leyland (6%), Hero Motor (6%) and Zee Ltd (6%).
Prominent losers were Britannia (-2%), GMDC (-2%) and Bhushan Steel (-2%).