Analysts said the monthly expiry of derivatives contracts triggered a lot of short-covering in finance stocks.
"Initially, firm global cues triggered the momentum, which further strengthened due to short covering. All sectoral indices witnessed a healthy buying interest. Importantly, Nifty has managed to surpass its immediate and crucial hurdle at 9,450, so it may be heading towards 9,650-9,750 levels. Banking and financial stocks
will continue to play a critical role," said Ajit Mishra, VP Research, Religare Broking.
Forecasts of normal monsoon also helped sentiment. Also, massive stimulus action from global central banks spurred risk taking.
Going forward, analysts said investors are likely to keep a watch on GDP data which expected on Friday. On the global front, any news
on US-China tussle will be on investors' radar. All the Sensex
components barring three ended the session with gains. L&T was the best-performing Sensex
stock and rose 6.17 per cent. All the BSE sectoral indices ended the sessions with gains. Capital Goods and auto stocks rose the most, and their gauges rose 5.1 per cent and 3.5 per cent, respectively.