At closing, Sensex was at 80,109, up 992 points, or 1.25 per cent, and Nifty was at 24,221, up 314 points or 1.32 per cent.
In the last two trading sessions, Sensex added nearly 3,000 points.
Banking stocks led the rally in the market. Nifty Bank closed at 52,207, up 1,072 points or 2.10 per cent.
Along with largecaps, buying was also seen in midcap and smallcap stocks. Nifty Smallcap 100 index closed at 18,115, up 360 points or 2.03 per cent, and Nifty Midcap 100 index closed at 55,900, up 883 points or 1.61 per cent.
All sectoral indices closed in the green. Auto, PSU Banks, realty, energy, infra and PSE contributed the most.
In the Sensex pack, L&T, SBI, Adani Ports, HDFC Bank, ICICI Bank, Power Grid, Reliance, Kotak Mahindra Bank, TCS, HUL, Axis Bank, M&M, NTPC, and UltraTech Cement were the top gainers. JSW Steel, Tech Mahindra, Asian Paints, Infosys, HCL Tech, and Maruti Suzuki were the top losers.
According to market experts, the major state election results lifted market sentiment and increased the scope of stability in government spending in H2FY25 to meet the capex target. The rally was broad-based, while capex-linked sectors like infra, capital goods, and industrials outperformed in expectation of a surge in new order inflows.
"The prospects of H2 remain positive due to a good monsoon, festival, and marriage season, which could ease the impact of earnings downgrades that happened in Q2," an expert added.
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 1,278.37 crore. Conversely, Domestic Institutional Investors (DIIs) supported the market with net purchases of Rs 1,722.15 crore, highlighting robust domestic buying interest despite weak global sentiment.
(IANS)
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