Tracking gains in overseas markets, the key benchmark indices made fresh highs in early trades today. The Sensex rose 172 points to 16,627 and the Nifty surged 50 points to trade at 4,942.
Metal, realty and banking stocks led the gains in the markets. The BSE metal index surged 1.5 per cent and the realty index rose 1.4 per cent. The BSE bankex was also up 1.2 per cent.
In the Sensex pack, Sterlite Ind was the biggest gainer. The stock rose 2.6 per cent. DLF, JP Associates and Tata Steel were up over 1.8 per cent each.
In the US markets, better news on retail sales and manufacturing helped send stocks higher on Tuesday, as did comments from Federal Reserve Chairman Ben Bernanke that the recession was probably over.
The Dow rose 56.61, or 0.6 percent, to 9,683.41, its highest close since Oct. 6, when it finished at 9,956.
The S&P 500 index rose 3.29, or 0.3 percent, to 1,052.63, while the Nasdaq composite index rose 10.86, or 0.5 percent, to 2,102.64.
Taking cues from US markets, key Asian indices were trading higher today. South Koreas Kopsi rose 2.2 per cent and Hong Kong's Hang Seng was up 1.8 per cent. Japans Nikkei also gained 1.5 per cent. However, Chinas Shanghai Composite fell 1.7 per cent.