6.8 percent, rising the most in a day since August 2013, while Ranbaxy shares also rallied 4.7 percent.
Investors also regained appetite for blue-chips, especially interest rate-sensitive banks, which rose 3.4 percent, after indexes had retreated from previous record highs hit on April 3.
The BSE index provisionally ended 1.61 percent higher, while the NSE index rose 1.51 percent.
Raghu Kumar, Cofounder RKSV
The upswing was attributed to a report issued earlier in the day by the International Monetary Fund (IMF), which projected that India's GDP would grow at 5.4% in FY 2014-2015 and fare even better the subsequent year at a projected 6.4% growth in FY 2015-2016. This marks a huge relief for investors, as India's GDP is the only major fundamental indicator that has not been posting strong numbers over the past few quarters. While inflation has been brought under control due to heavy RBI intervention and the Rupee has appreciated and shown signs of stability, the only concern left in the minds of investors had to do with GDP. India's GDP stood at 4.4% in 2013 and 4.2% in 2012, far below what economists would consider healthy numbers. With a strong GDP forecast, coupled with the upcoming elections, we could be in the midst of a big bull rally over the next two months."
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