The key benchmark indices surged in late afternoon deals led by gains in banking, power and capital goods stocks. The rail infra stocks, however, fell sharply after posting early gains.

The Sensex was trading at 14,903, up 1.7 per cent. The Nifty gained 71 points to trade at 4,420.

The BSE banking index rose 2.3 per cent and the BSE power index advanced 1.8 per cent. The BSE capital goods index was also up 1.6 per cent.

Among the rail infrastructure stocks, BEML was down nearly 5 per cent while Titagarh Wagons fell 5 per cent.

In the Sensex pack, HDFC was the biggest gainer, up nearly 7.4 per cent. M&M and Tata Steel were the other main gainers in the pack.