The BSE Sensex and NSE Nifty surged over 2 per cent on Wednesday after a private weather forecaster Skymet raised the outlook for the 2016 monsoon amid firm global cues. Sentiments further improved after Citigroup said that India’s GDP growth for the fourth quarter of 2015-16 is likely to improve to 7.8 per cent – the highest pace in six quarters – on account of uptrend in economic activity and favorable base effect. Morgan Stanley also upgraded Indian equities to ‘overweight’ from ‘equalweight’.

 

Sensex closed 575.70 points, or 2.28 per cent up at 25,881.17, while Nifty 50 index settled 186.05 points, or 2.40 per cent, up at 7934.90. Both the indexes posted their best percentage gain since March 1.

 

Barring Cipla (down 4.42 per cent), rest all other components in the Nifty 50 index closed in green. Tech Mahindra surged the most — 10.42 per cent, followed by IndusInd Bank (up 4.99 per cent), ICICI Bank (up 4.56 per cent), Bajaj Auto (up 4.40 per cent) and BHEL (up 4.33 per cent).