The benchmark Sensex on Friday pierced through the 33,000-mark amid heavy buying by cash-rich domestic institutions and strong overseas cues.
Market breadth was positive with 1,272 advances against 316 declines.
Dalal Street saw investors hunting for bargains in recently-battered bank, auto and metal stocks, that came under the weather in the previous session on the back of the central bank's decision to hold repo rates in its sixth bi-monthly monetary policy meeting.
The broader market, midcap shares outsmarted the smallcap stocks with substantial gains.
Asian markets were trading higher following a broad-based rally in United States equities. "Stability at a governance level is positive for market sentiment", said Karthikraj Lakshmanan, senior fund manager-equities, BNP Paribas Mutual Fund. Provisional data with the exchanges showed that foreign institutional investors sold scrips worth Rs 675.16 crore while domestic institutional investors bought stocks worth Rs 1,243 crore.
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In contrast, Hero MotoCorp, SBI, Reliance Industries, TCS, Asian Paint and Dr Reddy's succumbed to profit-booking.
The index finally ended at 32949.21, up 352.03 points, or 1.08 per cent - its biggest single-day gain since November 1, when it had surged 387.14 points. The S&P BSE Small-Cap index gained 194.40 points or 1.08 percent to settle at 18,211.88. The BSE FMCG index topped with a robust 2.23 per cent rise, followed by metal 1.36 per cent, healthcare 1.35 per cent, consumer durables 1.15 per cent, oil & gas 1.02 per cent, auto 0.97 per cent, bankex 0.92 per cent and realty 0.72 per cent.
In the Asian region, Japan's Nikkei rose 1.39%, Hong Kong's Hang Seng gained 1.19%, while Shanghai Composite Index gained 0.55%. London's FTSE was up 0.27 percent.