A man walks past the Bombay Stock Exchange (BSE) building in Mumbai.
Indian stock markets surged for the second consecutive session on Thursday as positive global cues and an upgrade by Goldman Sachs buoyed sentiment.
The 30-share BSE Sensex surged 1.27 percent or 238.39 points to 19078.86 and the 50-share NSE Nifty gained 1.17 percent or 68.30 points to 5795.75.
Markets opened on a firm note, tracking gains from Asian peers. Asian stocks advanced Thursday as investor sentiments turned positive overnight after a senior U.S. House of Representative leader expressed optimism in the 'fiscal cliff' talks reaching an agreement.
Sentiment was also supported after Goldman Sachs raised Indian stocks to 'overweight' rating from 'market weight' rating, citing growth recovery and moderation in inflation going ahead.
Indian markets started surging this week after rating agency Moody’s reaffirmed India’s rating outlook as stable while hopes that the government will be able to push economic reforms also added to the sentiment. Rating agency Moody's said on Tuesday that the outlook on its Baa3 rating for India is stable, citing the country's strong economic growth along with high savings and investment rates as supportive of the rating.
"The global markets are up and there are quite a few positive news flow on the domestic front, so investors do not want to take any chances. The market will stay positive this week as investors take cues from the government's continued reform efforts after signs that a standoff between the government and the opposition could soon end," Sushant Kumar, vice president of Bonanza Portfolio, told the Wall Street Journal.
Among the sectoral indices, all the sectors were trading with gains except technology and IT sectors. Realty sector climbed 3.15 percent and Auto sector surged 2.01 percent while Metal and Bankex sectors gained 1.62 and 1.58 percent respectively. HDIL surged 6.01 percent and Indiabulls Financial Services Ltd. climbed 9.78 percent while Suzlon Energy Ltd. rallied 9.68 percent.
In the banking sector, Indusind Bank surged 3.60 percent and ICICI Bank rose 2.18 percent while HDFC Bank rose 1.46 percent.
The overall market breadth was positive with 1632 advanced against 1032 declines. The BSE's Midcap Index surged 1.17 percent to 6820.52 and Smallcap Index advanced 0.64 percent to 7229.31. CNX midcap Index surged 0.85 percent and CNX IT fell 0.60 percent.
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