The S&P BSE Sensex rose over 100 points on Wednesday, extending gains for the sixth consecutive session driven by a strong rebound in global crude oil prices and metal shares.
The Sensex was up 102 points to close at 27,035 points, while the 50-share Nifty rose 24 points, or 0.30%, to end at 8,177.
"After gaining strength in the past six days, it is important for the Nifty to scale past the peak of 8,180. However, If Nifty fails to sustain above its 50-DMA, the recent momentum could hit a temporary break. Since overall short term trend continues to remain bullish, any dip or consolidation towards earlier breakout level could be used for making fresh entry," said Amar Ambani, Head of Research, IIFL.
Crude oil prices rebounded to above $52 a barrel following a weakness in the US dollar due to fading expectations over interest rate hike by the US central bank this year.
"Significantly greater risk appetite among market participants, the escalation of the conflict in Syria, a weaker US dollar or the breaking through of the psychologically important $50 mark – all of these are good explanations for the massive price surge yesterday, which saw the Brent price climb within just a few hours by over $3 or over 6%," said Commerzbank Corporates & Markets in a note.
Meanwhile, the International Monetary fund (IMF) cut its forecast for India's gross domestic product (GDP) growth to 7.3% in the current fiscal year from an earlier forecast of 7.5% made in July.
India would still remain the fastest growing economy in the world even if it meets the current estimate of IMF, as China's economic growth is estimated to fall to 6.8% in 2015 as compared to 7.3% last year.
Among the sectoral indices, the BSE Metal index was the top gainer ending 2.7% higher, followed by Realty, Auto, Oil and Gas indices. Hindalco shared soared 9.6%, while Vendanta ended 6% higher.
Tata Motors shares extended gains for the third straight session, closing 2.31% higher at Rs 341.
IT index was the top loser, as the rupee strengthened further amid a rally in stock markets and depreciation in the greenback.
The stock price of HCL Technologies fell 4.2% to Rs 816, touching an eight-month low. In the past four trading sessions, the HCL Tech share has plunged by 16% after the company said that its revenue would be hit by currency fluctuations in the July-September quarter.
HCL also warned that its earnings would be negatively impacted by some client-related issue. It sees $20 million revenue loss from differences with one of its major clients.
Share prices of top IT firms Infosys, TCS and Wipro were down over 1% each.
On the commodities front, gold prices soared to reach one-month high, tracking a firm trend in the overseas market. Pick up in demand from jewellers ahead of festive season also helped the yellow metal prices to go up.
While gold prices rose sharply by Rs 200 to Rs 26,850 per 10 grams, silver prices jumped Rs 550 to Rs 37,250 per kg.