The market sprang to life following huge buying late in the afternoon today on the National Stock Exchange (NSE) lifting the benchmark CNX Nifty higher by 42 points.
FMCG, technology, healthcare, financials, energy and auto related counters were in limelight.
Though today's rally came as a surprise, brokers said a pullback was in the offing given the oversold positions in the market and given that the market is expecting series of investor-friendly measures in the Budget.
The rally helped the benchmark to close comfortably above the psychologically crucial 5,900-levels.
Globally, most Asian stocks ended lower on profit-taking after overnight sharp gains while European markets were trading firm on positive German data.
The 50-share Nifty swung between a high of 5,947.55 and 5,883.15 before ending at 5,939.70, registering a sharp rise of 41.50 points, or 0.70 per cent, over the previous close.
Amid big movers, PSU oil major ONCG remained the top index performer, rallying by 3.73 per cent followed by realty major DLF, ACC, Ranbaxy, Ultracemco, BHEL, HCL-Tech, Cipla, Bajaj Auto and Sesa Goa.
The losers included Bharti Airtel, Gail, HeroMotoco, Coal India, Jindal Steel, HDFC Bank, L&T and HDFC.
Turnover in the cash segment declined to Rs 8,109.37 crore from Rs 8,181.24 crore yesterday. A total of 5,388.76 lakh shares changed hands in 48,91,512 trades. The total market capitalisation stood at Rs 66,97,388 crore.