The RBI on Wednesday had allowed the three state-owned oil companies to buy dollars from the central bank. The PSU oil companies are the biggest buyers of dollars, requiring around USD 8-8.5 billion every month for importing an average 7.5 million tonnes of crude oil.
The rupee, which closed at a record low of 68.80 on Wednesday, triggering a state of uneasiness and axiety, recovered and quoted at 67.30 in the afternoon trade.
The 30-share Sensex opened higher and stayed in positive territory until it settled at 18,401.04, a rise of 404.89 points or 2.25 percent. The gain was the most since August 22, when the index climbed 407 points, or 2.27 percent.
The broader Nifty index on the National Stock Exchange added 124.05 points, or 2.35 percent, to 5,409.05. The SX40 index on the MCX-SX closed at 10,849.51, up 219.46 points or 2.06 percent.
Oil and gas led all BSE sectoral indices higher, followed by metal, FMCG, capital goods and auto shares. Sesa Goa was the biggest gainer on the index, climbing 13.54 percent. The other major gainers were HDFC, Hindalco and Reliance Industries.
The three PSU oil companies gave up their initial gains at the close. Indian Oil rose 1.45 percent to Rs 209.55, Bharat Petroleum climbed 0.45 percent to Rs 270.05 and Hindustan Petroleum fell 0.31 percent to Rs 163.55.
Besides, another factor which is believed to have boosted the investors’ sentiment is US President Barack Obama's statement that he had not yet decided whether to attack Syria in the aftermath of the Assad regime allegedly using chemical weapons.


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