BSE Sensex and Nifty gained over 1 per cent after the India HSBC manufacturing PMI for the month of December surged to 54.5, a two-year high. A reading above 50 suggests expansion. In the month of November it was 53.3.
Sensex rose as much as 350 points to 27,855, while the 50-shares Nifty surged over 100 points to 8,385.65.
Although buying was seen across the sectors but banks, auto and metals emerged as clear winners. All these sectoral indices were up above 1 per cent.
Asian Paints was the top gainer in Nifty with 3.72 per cent gains followed by JSPL, which was up 3 per cent.
HDFC, ICICI Bank and Axis bank were the other top gainers in Nifty rising between 2 to 3 per cent.
Out of the 50 stocks in Nifty 48 stocks advanced and two stocks declined. BPCL and NMDC were the only two losers in Nifty, down between 0.1 to 0.6 per cent.
The broader indices also witnessed buying today. The BSE smallcap and midcap index gained around 1 per cent each.
Shares in SRF gained 8 per cent after the company said that it has acquired Global DuPont's Dymel brand, which is the pharma business of the company for a consideration of $20 million.
As of 10.52 a.m. Sensex was up 319 points at 27,826 and Nifty gained 93 points to 8,377.