Market benchmark Sensex rescaled the key 28,000-mark by surging almost 161 points in early trade today on optimistic buying ahead of the RBI policy review tomorrow amid a firming rupee.
Firm Asian cues on easing fears about future of German giant Deutsche Bank also gave sentiment here a leg-up.
Rising for the second day, the 30-share index advanced 160.79 points, or 0.57%, to 28,026.75, with auto, realty, healthcare, metal, capital goods and consumer durable stocks leading the gainers.
The rupee strengthened by 13 paise against the dollar to 66.48 in early trade in the forex market.
The gauge had gained 38.43 points in the previous volatile session on Friday.
The NSE Nifty perked up 60.85 points, or 0.70% to 8,672.
Brokers said widening of bets by investors and funds ahead of the monetary policy review due on Tuesday and heavy purchases by domestic financial institutions added to the positive mood.
Auto stocks were in the limelight amid encouraging September sales data announcement.
Maruti Suzuki was trading higher by 3.39% at Rs 5,664.70 and Hero MotoCorp was up 2.74% at Rs 3,508.05 while Bajaj Auto gained 2.39% at Rs 2,899.70.
Tata Motors advanced 1.88% at Rs 544.80 and M&M was trading 0.79% higher at Rs 1,417.
Among other Asian markets, Hong Kong’s Hang Seng was up 1.38% while Japan’s Nikkei surged 1.12% in the early session of Sensex today. Financial markets in China are closed on Monday for a public holiday.
The US Dow Jones Industrial Average ended 0.91% higher on Friday.