However, technology stocks emerged as the only underperformers in today’s trade after HCL Technologies warned of adverse cross currency impact on the company's revenue and EBIT in Q3 March 2015 in pre-quarter earnings update.
Markets will be closed on 2 April and 3 April on account of Mahavir Jayanti and Good Friday, respectively.
The 30-share Sensex gained 303 points to end at 28,260 and the 50-share Nifty soared 95 points to close at 8,586.
“In the last month, Nifty witnessed decent downside from 9100 to 8300 levels in very short span of time due to this, Nifty has entered in the oversold zone so bounce back is expected.
As buying is continue in the markets from last two sessions which suggest more buying from current levels.
The key point on daily chart is nifty trading above the 100EMA, which gives the positive outlook for coming days.
So, one can initiate long around 8500 levels for the upside target of 8640 in coming days.” said Mudit Goyal Technical Analyst, SMC Global Securities Limited.
On the domestic front, the growth in output of eight core industries, which has a weight of nearly 38% in the Index of Industrial Production, stood at 1.4% in February, a 17-month low.
The Centre's fiscal deficit crossed the Budget's revised estimate (RE) by 17.5%, during the April 2014-February 2015 period.
CRUDE OIL
Brent crude oil futures edged lower as markets kept a close watch on US-Iran nuclear talks and the build-up in US oil supplies.
For India, the decline in global crude oil prices along with deregulation of diesel price announced by the Indian government in October 2014 will help reduce the government's fuel subsidy burden and help contain its fiscal deficit.
The steep slide in global crude oil prices will also help India in containing its current account deficit and fuel price inflation.
India imports 80% of its crude oil requirement.
KEY STOCKS
On the sectoral front, BSE Bankex, FMCG, Healthcare, Auto, Realty indices ended higher up to 2.5%.
However, BSE IT and Teck indices lost sheen and ended down up to 1%.
After a weak start, financials gained momentum in the late noon deals and rallied across the exchanges.
ICICI Bank, Axis Bank, HDFC twins gained up to 2.2%.
State Bank of India, the country's largest lender, may offer employee share options, recruit specialists and promote faster -- radical changes that promise to shake up a bloated, debt-heavy sector.
The stock was up 2%.
Sun Pharma emerged as the top gainer and surged 4.4% ahead of record date set for the merger with Ranbaxy.
Dr Reddys Lab advanced 1% after it entered into a definitive agreement to acquire a select portfolio of the established products business of UCB in the territories of India, Nepal, Sri Lanka and Maldives.
Bharti Airtel has gained 2.3%.
Bharti Airtel has informed BSE that Mr. Mukesh Bhavnani, Group General Counsel & Company Secretary has resigned from the Company to pursue an assignment outside of the Company.
Engineering conglomerate L&T advanced 1% after securing a turnkey order from NTPC for setting up a 2x660 MW greenfield ultra-supercritical thermal power plant in Khargone district of Madhya Pradesh on EPC basis. NTPC was up 0.7%.
Tata Motors gained nearly 2.7%. The stock will turn ex-rights on Monday, April 6, 2015, in the ratio of 6:109 i.e. six shares will be allotted for every 109 shares held.
Shares of Maruti Suzuki India dropped 1.4% after reporting 1.6% year-on-year fall in total sales at 111,555 units in March 2015, due to lower sales in the compact segment.
The company had sold a total of 113,350 units in March 2014.
M&M ended 1.4% higher. M&M has announced its total auto sales numbers at 45,212 units during March 2015 as against 51,636 units during March 2014.
Metal stocks ended in the positive territory after the official Purchasing Managers' Index (PMI) of China released by the National Bureau of Statistics on Wednesday, edged up to 50.1 in March from February's 49.9.
Hindalco was up 2%.
Coal India gained 0.2% and Sesa Sterlite climbed 0.3%.
Tata Steel has divested its entire stake in Lanka Special Steels Limited to E. B. Creasy & Company for a total consideration of around Rs 20.4 crore in an all cash deal.
The stock was up 2.3%.
Shares of three natural gas production companies including ONGC and GAIL ended lower up to 1% after the government reduced the natural gas price by 7.72% from today, 1 April 2015.
IT stocks dropped after HCL Technologies warned of adverse cross currency impact on the company's revenue and EBIT in Q3 March 2015 in pre-quarter earnings update.
Infosys and TCS are trading lower by 2% and 0.3% each.
FMCG majors ITC and HUL ended 2% and 1% higher.
Airline stocks gained after state-run oil marketing companies cut jet fuel prices. Jet Airways was up 0.2% and SpiceJet gained over 3%. Jet fuel accounts for one-third of operational costs of airlines, say analysts.
Shares of fertiliser companies ended higher on reports that the government announced a uniform gas pricing policy and pooling of domestic and imported natural gas for urea plants in India.
Zuari Agro Chemicals rallied 10% while Fertilizers & Chemicals Travancore (FACT) surged 7% on the Bombay Stock Exchange (BSE).
The BSE Midcap and Smallcap indices outperformed the large counterparts and were up between 1.5-2.5%.
The market breadth ended firm on the BSE with 2,009 advances against 695 declines.