Further, beginning of June series in the derivatives segment, supported the upside in stock prices.
The 30-stock index opened on a positive note at 27,553.03 but quickly slipped into the red on profit-booking. Later, it bounced back at a rapid pace to hit the day's high of 27,888.32 on beginning of June series in the derivatives segment.
The gauge settled 321.73 points or 1.17 percent higher at 27,828.44, its strongest rally since May 18. On similar lines, NSE Nifty recaptured the 8,400-mark by rising 114.65 points or 1.38 percent to 8,433.65 after hovering between 8,443.90 and 8,305.70, intra-day.
Revival of value-buying by investors as recent fall was excessive, too influenced sentiments, they said. Bharti Airtel at 5.98 percent was the best Sensex gainer, followed by M&M 4.89 percent, GAIL 2.30 percent, Maruti Suzuki 2.26 percent and Coal India 2.14.
Sentiments bolstered on renewed hopes that the Reserve Bank of India may cut rates in its policy review and beginning of new series in the derivatives segment, triggering buying by participants, brokers said.

Of 30-Sensex shares, 26 ended higher, while 4 ended lower. Among BSE sectoral indices, auto index gained the most by rising 2.08 percent, followed by infra (1.84 percent), healthcare (1.63 percent), bankex (1.45 percent), oil&gas (1.32 percent) and capital goods (1.23 percent).
Buying activity also re-emerged in the broader markets with the BSE mid-cap index rising 1.48 percent and small cap gaining 1.22 percent. Meanwhile, foreign portfolio investors sold shares worth Rs 792.54 crore, while Domestic Institutional Investors bought shares worth Rs 683.29 crore on Thursday, as per provisional data.

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