The soothing words of US Federal Reserve Chairman Ben Bernanke that a "highly accomodative policy'' was required in the foreseeable future and the central bank will not automatically raise interest rates when the unemployment rate slipped to 6.5 per cent in the US, lifted the market sentiment across the world, including India.
As his words reinforced belief that the Quantitative Easing would not disappear in a hurry even as the US economy hits the growth path led to a surge in major Asian markets, barring Nikkei of Japan.
Buoyed by US Federal Reserve Chairman Ben Bernanke's assurance that an accommodating monetary policy was needed now, Asian shares climbed to a three-week high on Thursday as investors were prompted to reassess the risk of an early end to the Fed's bond-buying programme.
Bank of Japan too kept its bond-buying programme unchanged at the end of its two-day meeting.
This optimism rubbed on the Indian markets as well with the BSE Sensex up by 395.99 points or 2.05 per cent at 19,690.11 and the NSE Nifty up by 121.45 points or 2.09 per cent at 5,938.15.
Metals (up 3.00 per cent), banking (+2.5 per cent) and realty (+2.11 per cent) indices rallied the most and supported the Sensex.
Hindalco was the biggest gainer in terms of percentage, up by 4.74 per cent to trade at Rs 102.80, followed by Sterlite 4.36 per cent at Rs 87.35, HDFC Bank 3.6 per cent at Rs 683, Hero MotoCorp 3.23 per cent at Rs 1,705 and HDFC 3.01 per cent at Rs 854.25.
But there were also warning signals closer home which could not be ignored with auto major Mahindra & Mahindra Ltd stating that it would be following "no-production days'' lasting 1-8 days during the remainder of the month with a view to align production with demand.
However M&M's gain was limited to 0.66 per cent at Rs 917.90 probably because of the company's move to cut back production. BHEL gained the least and was up 0.52 per cent at Rs 185.00.
Meanwhile, in the Asian trade, Nikkei rose 55.98 points or 0.39 per cent to 14,472.60, Hang Seng surged 532.93 points or 2.55 per cent to 21,437.50 and S&P/ASX 200 climbed 64.34 points or 1.31 per cent to 4,965.70.
In the European markets, Stoxx 50 was up 31.22 per cent or 1.17 per cent at 2,690.93, FTSE 100 rose 69.14 points or 1.06 per cent to 6,574.10 and DAX jumped 98.69 points or 1.22 per cent to 8,165.17.
Buoyed by US Federal Reserve Chairman Ben Bernanke's assurance that an accommodating monetary policy was needed now, Asian shares climbed to a three-week high on Thursday as investors were prompted to reassess the risk of an early end to the Fed's bond-buying programme.
Bank of Japan too kept its bond-buying programme unchanged at the end of its two-day meeting.
This optimism rubbed on the Indian markets as well with the BSE Sensex up by 395.99 points or 2.05 per cent at 19,690.11 and the NSE Nifty up by 121.45 points or 2.09 per cent at 5,938.15.
Metals (up 3.00 per cent), banking (+2.5 per cent) and realty (+2.11 per cent) indices rallied the most and supported the Sensex.
Hindalco was the biggest gainer in terms of percentage, up by 4.74 per cent to trade at Rs 102.80, followed by Sterlite 4.36 per cent at Rs 87.35, HDFC Bank 3.6 per cent at Rs 683, Hero MotoCorp 3.23 per cent at Rs 1,705 and HDFC 3.01 per cent at Rs 854.25.
But there were also warning signals closer home which could not be ignored with auto major Mahindra & Mahindra Ltd stating that it would be following "no-production days'' lasting 1-8 days during the remainder of the month with a view to align production with demand.
However M&M's gain was limited to 0.66 per cent at Rs 917.90 probably because of the company's move to cut back production. BHEL gained the least and was up 0.52 per cent at Rs 185.00.
Meanwhile, in the Asian trade, Nikkei rose 55.98 points or 0.39 per cent to 14,472.60, Hang Seng surged 532.93 points or 2.55 per cent to 21,437.50 and S&P/ASX 200 climbed 64.34 points or 1.31 per cent to 4,965.70.
In the European markets, Stoxx 50 was up 31.22 per cent or 1.17 per cent at 2,690.93, FTSE 100 rose 69.14 points or 1.06 per cent to 6,574.10 and DAX jumped 98.69 points or 1.22 per cent to 8,165.17.
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