The Sensex ended sharply higher by 461 points at 14,944, despite seeing some profit booking in the late afternoon trading. During the day, it had touched a high of 15,107. The Nifty also advanced 3 per cent to close at 4482 levels.

The markets spurted after the Nuclear Supplier Group agreed to allow to supply nuclear fuel and technology for civilian use. The global cues were positive, following the US government’s decision to bail out troubled mortgage giants, Freddie and Fennie. 

All major Asian markets closed firm with Hong Kong’s Hang Seng, South Korea’s Kospi and Japan’s Nikkei ending in the green by over 3.4 per cent each. The European markets have also opened with an upswing with key indices trading in the green by over 3.3 per cent each.

“There is no conviction on the upper side so there are less chances of the markets breaking 4800 or 5000 levels. The nuke deal boost to the market is just a temporary  phenomenon. It would take 3-4 years for companies like BHEL or L&T to reap the benefits of the deal,” said Daljeet S Kohli, Head of Research PCG, Emkay Shares & Stock Brokers.

Buying was evident across most counters with capital goods, banking  and realty counters leading the gainers.

“ The markets will remain stuck in a range as there is lack of liquidity in the markets and profit-booking at higher levels,” said Gaurang Shah, Chief Manager, Geojit Financial Services.

Top gainers among the BSE-30 scrips were Sterlite Industries, which gained 5.9 per cent, ICICI Bank, SBI and L&T. Tata Motors gained 3.9 per cent on the BSE, after some headway was made in Singur issue.

 Banks, capital goods surge

The BSE banking index, advancing 4 per cent, was the biggest gainer among the sectoral indices. ICICI Bank, up 4.9 per cent, was the biggest gainer in the sector, followed by SBI, HDFC Bank and Yes Bank.

The BSE capital goods index, also rallied 3.7 per cent to end at 12,424 levels.