Mumbai: Tracking firm global peers, Indian shares rallied for a third straight session Wednesday, helped by rise in energy stocks, as investors felt markets have already factored in a likely US interest rate hike.
Trading in green throughout the day, the benchmark BSE Sensex garnered 173.93 points to settle at over a one-week high of 25,494.37, while the broader NSE Nifty finished slightly above 7,750-mark.
Sentiment also got a lift from Finance Minister Arun Jaitley's assurance that the proposed Goods and Services Tax (GST) rate would be less than 18 percent and on likely scrapping of 1 percent additional tax.
The Congress has been stalling passage of the GST bill in Rajya Sabha where the ruling NDA is in a minority.
Elsewhere, Asian and European markets were in better shape as investors saw a 25-basis point rate hike by the Fed already factored in.
The US Federal Reserve is widely expected to announce a hike in interest rate, first in nearly a decade, when its two-day policy-setting meeting ends later today.
"Investors believe that post Fed rate hike, markets will stabilise as the overhang of a rate hike will be shrugged off," said Gaurav Jain Director Hem Securities.
The 30-share Sensex resumed higher at 25,402.47 and continued to rise to touch the day's high of 25,572.90.
It finally settled 173.93 points or 0.69 percent higher at 25,494.37, its highest closing since December 7. The gauge had gained over 276 points in the past two sessions.
The NSE Nifty after moving between 7,776.60 and 7,715.75, ended 50.00 points or 0.65 percent higher at 7,750.90.
ONGC topped the gainers list among BSE stocks by surging 3.90 percent to Rs 226.55 while RIL closed 0.22 percent up at almost three-week high of Rs 978 as global crude rebounded from a six-year low.
Other major gainers were Bharti Airtel, ICICI Bank, NTpercent, Lupin, Infosys, BHEL, Hero MotoCorp, TCS, Coal India, Sun Pharma, HDFC, SBI, HDFC Bank, Axis Bank and Bajaj Auto.
M&M, however, emerged as the top loser with a fall of 5.44 percent on concern the company?s sales will be hit after the Supreme Court banned registration of diesel-run SUVs and cars having engine capacity beyond 2,000cc in Delhi and National Capital Region till March 31.
IT major Wipro witnessed profit booking after it said that recent floods in Chennai will have a "material impact" on its December quarter revenues and hurt its operating margins.
Overseas, Asian markets ended higher after overnight gainsin US, while European shares rose in choppy start as investors awaited the outcome of a crucial rate-setting meeting of the US Federal Reserve.
Key indexes in Asia, China, Hong Kong, Japan, Singapore, South Korea and Taiwan moved up between 0.17 percent and 2.61 percent.
Besides, markets in France, Germany and the UK moved higher by 0.12 percent to 0.48 percent.
Back home, 22 scrips firmed up from the 30-share Sensex pack.
Major gainers were ONGC (3.99 percent), Bharti Airtel (3.83 percent), ICICI Bank (2.29 percent), Lupin (1.95 percent), Infosys (1.72 percent), NTPC (1.37 percent), GAIL (1.34 percent), TCS (1.34 percent), Sun Pharma (1.33 percent) and BHEL (1.17 percent).
However, M&M fell by 5.44 percent followed by ITC 0.96 percent, Wipro 0.64 percent, Hindalco 0.32 percent, HUL 0.30 percent and L&T 0.14 percent.
Broader markets also perked up with the BSE small-cap index and mid-cap rising 0.24 percent and 0.35 percent, respectively.
Among BSE sectoral and industry indices, telecom rose 2.42 percent, followed by oil&gas (1.71 percent), utilities (1.51 percent), power (1.30 percent), teck (1.30 percent), bankex (1.16 percent), energy (1.12 percent), IT (1.07 percent) and finance (1.01 percent), while consumer durables fell (0.58 percent), FMCG by (0.58 percent) and auto (0.51 percent).
The market breadth remained negative as 1,426 stocks ended lower, 1,267 closed higher while 225 ruled steady. The total turnover rose further to Rs 2,722.72 crore from Rs 2,577.64 crore yesterday.
