The sentiment-driven rally also got support from stock specific earning results and Finance Minister Arun Jaitley's statement that the Centre will step up reforms to attract more investment and fill up infrastructure deficit.
The 30-share Sensex ended up 140 points at 28,262 and the 50-share Nifty was up 37 points at 8,551.
The ETF is expected to fetch the govt Rs 3,000 crore.
The broader markets are, however, outperforming the larger peer.
Auto stocks Hero MotoCorp and Mahindra & Mahindra gained 1-2 per cent on the back of strong sales in the month of September.
Shares of L&T Technology Services, an arm of engineering giant Larsen and Toubro, made a decent debut on the bourses
8 out of 12 sectoral indices closed in red with BSE IT and Healthcare indices losing 0.5%.
At 15.05 PM, the 30-share Sensex was up 281 points at 28,238 and the 50-share Nifty gained 86 points at 8,577
Domestic market is losing its trend to rate sensitive stocks post the announcement of the new RBI governor who is likely to maintain a cautious stance on interest rate cut
While going back to the old bill is only a face saver, there is little in the bill that will excite industry or the markets, says Shishir Asthana.
Sectoral performance was mixed with media and PSU banking stocks attracting buyer interest and healthcare, FMCG and metal stocks bearing the brunt of the bears
BSE Midcap index outperformed the benchmark indices to end with 0.4% gains.
The report, 'Road Ahead Clears Up for Oil PSUs', says the decline in underrecoveries, or losses oil-marketing companies incur on selling petroleum products below market price, will have a significant positive impact on both upstream and downstream public-sector oil companies.
Nifty 50 firms' net profit estimated to grow by a modest 3.1% in Q2, reports Krishna Kant.
BSE Mid-cap index ended lower by over 2.5% and BSE Small-cap index tumbled over 3%.
Sensex surged 486 points or 1.9%.
Sensex was up 184 points at 25,580 and the Nifty added 71 points to end the day at 7,654
The 30-share Sensex ended higher by 177.46 points at 28,885.21 and the Nifty gained 63.90 points at 8,778.30.
Experts prefer domestic consumption-driven plays and defensives such as information technology and pharmaceuticals
Ajit Mishra, Vice President, Research, Religare Broking, answers readers's queries on stocks they own or want to buy.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries
Sensex eneded 374 points higher on rate cut expectation from the RBI.
Oil tanked to a 7-year low as OPEC decided to maintain production.
The 30-share Sensex ended down 208 points at 27,057 and the 50-share Nifty closed 59 points lower at 8,094.
The 30-share Sensex ended 117 points higher at 26,560 and the 50-share Nifty gained 31 points to end at 7,936.
Sun Pharma emerged as the star performer and closed 4.03 per cent up at Rs 675.45, while Cipla rallied 1.58 per cent to Rs 592.60.
The broader markets underperformed benchmark indices as the BSE Mid-cap and Small-cap tumbled over 2%.
Market breadth ended weak on the BSE with 1,838 declines against 1,218 advances.
Sensex gained over 100 points and ended at 26147.33 while the Nifty ended 27 points higher at 7,795.75.
Sensex ended up 11 points at 25,561 and the 50-share Nifty gained 16 points to end at 7,640.
Participants will watch out for the Brexit poll outcome in the late morning trades tomorrow.
BSE Midcap and Smallcap indices ended in line with their larger counterparts and closed marginally up 0.2% and 0.4%, each
The market players are expected to react to the better than expected factory output data for the month of August, which revealed that the industrial production grew by 6.4%.
Telecom stocks fell after Mukesh Ambani extended Reliance Jio's free offers till March 2017.
Markets snapped their 8-day winning streak.
Investors booked profits at higher levels despite the growth oriented Budget.
The market breadth ended weak on the BSE with 2,086 shares declining and 893 shares advancing.
Sensex plunges 322.39 points to over 1-month closing low of 27,797.01; Nifty tumbles 97.55 points to 8,340.70.
The Sensex was up 70 points and the Nifty was up 20 points led by SBI on robust Q2 earnings.