The market benchmark Sensex on Wednesday spurted by 266.80 points to close at 35,645.40, led by gains mainly in auto, bank and energy stocks despite weak global cues amid concerns related to trade war and macro conditions.
Both key indices Sensex and Nifty posted gains for the second straight session, with consistent buying by domestic institutional investors and encouraging services PMI data for June lifting trading sentiment, said brokers.
The services sector returned to growth during June and registered the fastest rate of expansion in a year, supported by robust increase in new business orders, said a monthly survey.
Agri-linked stocks like kohinoor foods, LT foods, Chamanlal Setia Exports and KRBL rallied up to over 12 per cent after the government on Wednesday hiked the minimum support price for paddy.
The paddy MSP was raised by a steep Rs 200 per quintal.
The Cabinet Committee on Economic Affairs (CCEA) at its meeting on Wednesday approved the MSP of 14 kharif (summer) crops.
The BSE 30-share Sensex started on a positive note at 35,385.52 and advanced to the day's high of 35,667.31 before ending at 35,645.40, up 266.80 points, or 0.75 per cent.
However, the gauge touched the day's low of 35,309.67. It had gained 114.19 points in the previous session.
The NSE Nifty, after hitting a high of 10,777.15, closed at 10,769.90, up 70 points, or 0.65 per cent. It touched a low of 10,677.75 intra-day.
Meanwhile, on a net basis, domestic institutional investors (DIIs) bought shares worth Rs 278.84 crore, while foreign portfolio investors (FPIs) sold equities worth Rs 1,043.31 crore on Tuesday, provisional data showed.
European markets fell at the start of trade, tracking weak global cues.