MUMBAI: Benchmark Sensex ratcheted up by more than 300 points for the second session in a row today on optimism over India's growth recovery amid positive global cues.
The Sensex closed at a three-week high of 34,445.75, while the wider NSE Nifty went past the 10,550-mark.
Investor sentiment was bolstered after a Morgan Stanley report said India's economic recovery is expected to have gathered momentum and GDP growth for the December quarter is likely to have accelerated to 7 per cent.
The GDP numbers will be released on Wednesday.
A firming trend on Asian and European bourses following a good show by Wall Street on Friday added to the buying momentum, brokers said.
The 30-share BSE Sensex opened on a strong footing at 34,225.72 and maintained its upward trend to hit the day's high of 34,483.39 before ending at 34,445.75, up 303.60 points, or 0.89 per cent.
This level was last seen on February 5, when the Sensex had closed at 34,757.16.
The index had rallied 322.65 points in the previous session on Friday on value-buying by investors in recently-battered blue-chip stocks.
The Nifty finished the day at 10,582.60, showing a hefty gain of 91.55 points, or 0.87 per cent, after shuttling between 10,592.95 and 10,520.20.
"Market is gradually recovering lost ground, supported by positive global cues. Investors are waiting for Q3 GDP and IIP data. GDP is expected to grow at 6.9 per cent which has raised a positive sentiment while reducing the volatility in the market," said Vinod Nair, Head of Research, Geojit Financial Services.
Gains were led by realty, auto, capital goods, banking, infrastructure, metals, power, oil & gas, PSU and consumer durables sectors, which rose up to 3.30 per cent.
IT, teck and healthcare indices ended in the red.
Domestic institutional investors (DIIs) net bought equities to the tune of Rs 1,514.03 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 486.32 crore on Friday, provisional data showed.
Maruti Suzuki emerged as the leader of the Sensex pack today, with a 3.41 per cent rise, followed by Tata Motors at 3.22 per cent.
Other gainers were IndusInd Bank, L&T, Axis Bank, M&M, Adani Ports, Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Power Grid, Hero MotoCorp, Coal India, Dr Reddy's, HDFC Ltd, HUL, Bajaj Auto, Yes Bank, Asian Paints, RIL, ONGC, Tata Steel and NTPC, gaining up to 2.94 per cent.
In contrast, Sun Pharma, TCS, Infosys, ITC, Bharti Airtel, Wipro and SBI succumbed to profit-booking and fell by up to 2.46 per cent.
In keeping with the overall trend, the small-cap and mid-cap indices rose 0.88 per cent and 0.74 per cent.
Shares of scam-hit Punjab National Bank lost another 1.32 per cent. Gitanjali Gems too slumped 4.84 per cent to Rs 23.60.
Shares of Simbhaoli Sugars plunged 15.73 per cent today after CBI registered a case against the company, its chairman Gurmit Singh Mann, deputy MD Gurpal Singh and others in connection with an alleged bank loan fraud of Rs 97.85 crore.
The company's lender Oriental Bank of Commerce also fell by 10.02 per cent.
Most Asian and European markets rallied after US stocks rose last Friday to end a bumpy week with slight gains, as falling bond yields provided a reprieve for investors concerned about rising inflation.
In the Asian region, Japan's Nikkei rose 1.19 per cent, Hong Kong's Hang Seng gained 0.74 per cent, while Shanghai Composite Index gained 1.23 per cent.
European shares too were in the positive zone in their early deals, with Frankfurt's DAX rising 0.78 per cent and Paris CAC 40 up 0.72 per cent. London's FTSE was up 0.42 per cent.