Photographs: Reuters SI Reporter in Mumbai
Benchmark indices trimmed initial gains towards the close of trade after touching an intra-day high in early noon deals.
The 30-share Sensex ended 76 points at 24,374 levels and the 50-share Nifty added 24 points at 7,276 levels.
Foreign institutional investors sold shares worth a net Rs 266.22 crore on Wednesday, 21 May 2014, as per provisional data from the stock exchanges.
The finance ministry is set propose a new plan for the incoming government to further fiscal consolidation.
According to reports, the new plan which proposes to cut subsidies and welfare spending will reduce the current year's fiscal deficit and save Rs 25,000 crore (Rs 250 billion) in borrowing.
This helped investor sentiment and yields on the benchmark 10 year g-secs eased by 5 basis points to 8.72%.
The partially convertible rupee rebounded from lower levels to 58.53-a-dollar mark from its previous close of 58.51.
Stocks got a boost after minutes of the US Federal Reserve's last meeting reassured investors that policy makers will continue to support the economy, better than expected China PMI also helped the sentiment.
Japanese stocks led a surge in Asian equities to a one-year high on Thursday, after an upbeat reading on China's factory sector burnished risk appetite and blunted some of the more pessimistic views on the world's second-biggest economy.
Nikkei ended over 2% higher at 14,337 levels while Taiwan, Indonesia were up over 1%.
NTPC surged 7.4 percent followed by Coal India, Sesa Sterlite and Maruti shares which were up 4-5% and also the top Sensex gainers.
Oil & gas behemoth Reliance Industries closed at Rs 1101 levels up over 2% on the BSE. BSE oil & gas index, which tracks top stocks of sector, ended 1% higher.
Shares of state run Coal India, the world's biggest coal miner, hit their highest level in nearly three years on Thursday on speculation that PM-elect Narendra Modi plans to break up the company and opening up the sector for foreign investment.
Maruti stock got a boost after CLSA said the stock price could double in three years in a bull scenario if car volumes grow at a compounded annual growth rate (CAGR) of 20% due to renewed demand on back of growth pick up in the economy.
Gains in jewellery stocks led the BSE consumer durables index almost 7% higher making it top gaining sector on Thursday.
Titan scrip cheered RBI’s move to ease curbs on gold import (allowed gold on lease and star/premier trading houses to import gold under the 80:20 rule) on Thursday; it closed at Rs 330.45, up 6.5% after touching its 52-week high of Rs 347.65 during intra-day trades.
Power generation stocks rose on renewed buying.
Shares of power finance companies also edged higher, with Power Finance Corporation hitting 52-week high.
Nearly all sectors traded with gains; Real estate index was up 6% followed by power, metal, banks and oil & gas indices which are trading 1-2% higher.
Bajaj Auto is trading higher by 1% to Rs 1986 levels, extending its previous day’s 5% rally, on reports that Egypt government has lifted the ban on imports of two-wheelers and three-wheelers into the country which was in effect since February 2014.
Among broader markets, the BSE mid-cap and small-cap indices continued to outperform the benchmarks with over 2% gains on Thursday.
Market breath was robust as 2269 advanced against a decline seen in 744 shares.