The benchmark indices showed spectacular performance on the first day of June series. Positive announcements from the oil ministry about deregulation of oil prices and better-than-expected GDP (Gross Domestic Product) numbers elevated the confidence level among the investors and helped the markets to remain on the higher side.

Good global cues also aided the positive momentum. Infrastructure (capital goods + power), oil & gas, metal, realty, auto, telecom and technology stocks witnessed huge buying interest.

Better-than-expected GDP numbers cheered the markets; Growth number for the full year, FY2008-09, came in at 6.7% versus a projection of 7.1%. The GDP growth for the last financial year, FY08, stood at 9%. The numbers for the fourth quarter of FY09 also came in at 5.8% versus 5.8% last quarter and 8.8% a year ago. A CNBC-TV18 poll conducted earlier saw the fourth quarter GDP number at 5.24% and for the full year, for FY09 the poll saw GDP to be at 6.52% as against 9% last year.

The oil ministry said that deregulation of oil prices would be taken up by the Cabinet soon and added that tax breaks for gas production would also be taken up shortly. The Ministry said it planned to re-launch New Exploration Licensing Policy (NELP) VIII soon. The Ministry further stated that it would consider the decontrol of APM gas after the oil product deregulation.

Speaking on the impact, VK Sharma of Anagram Sharma said. ''I think it is worthwhile and it will give oil marketing companies as well as ONGC and GAIL some levy from having to bear the burden. The government too will not have to do that much. So I think it augers well for not only marketing companies but the others also for ONGC and GAIL.''

The 30-share BSE Sensex surpassed the 14,700 during the day and touched an intraday high of 14,727.28, up 431.27 points. But the some profit booking at higher levels wiped out some gains. It closed 329.24 points or 2.3% higher at 14,625.25. The 50-share NSE Nifty surged 150.95 points to touch a high of 4488.05, before closing at 4448.95, up 2.58% or 111.85 points.

ONGC, Reliance Industries, NTPC, DLF, Bharti, TCS, SAIL, L&T, SBI, BHEL, Wipro, Reliance Communication and Tata Steel were leading contributors in today's gain.

R Balakrishnan, Investment Analyst said, "I would term as the belief rally, which is going on in the hope of so many radical changes. I think this could continue till the Budget comes out. The BSE could touch about 16,000 levels before the Budget."

But he said, "The thing is around the usual suspects of what the government will do in terms of privatisation or rather partial disinvestment and infrastructure, education. That whole theme is taking the space and this is a very strong flow. I don't think fundamentals are being looked at, at this moment. So, I think one has to look at it as a funds flow driven belief rally."

The BSE Realty Index outperformed other indices, rose 241.95 points or 6.76%, to 3,819.89, as Indiabulls Real, DLF, Unitech and HDIL gained 3-9%.

In the capital goods space, Punj Lloyd, L&T, ABB, BHEL and Siemens were up 2.6-7.6%. Respective Index was up 4.13% or 472.67 points, to 11,921.39.

Buying was also seen in auto sector, Ashok Leyland, M&M, Maruti Suzuki, Tata Motors and Hero Honda went up 1-8.7%. Respective Index rose 151.95 points or 3.41%, to 4,610.61.

The BSE Oil & Gas went up 3.31% or 333.60 points, to 10,419.47, as HPCL, IOC, Cairn India, GAIL, ONGC, Reliance Petroleum, BPCL and Reliance Industries were up 2.6-8.3%.

Metals stocks also rallied; Tata Steel, JSL, SAIL, Hindalco and Sterlite went up 1.7-6%. Respective Index gained 3.11% or 328.47 points at 10,878.42.

IT Index closed 69.40 points or 2.37% higher at 2,997.55, as TCS, Wipro, Tech Mahindra and Infosys gained 1.6-6%.

In the telecom pack, Idea Cellular, Bharti Airtel, Reliance Communication, MTNL and Tata Teleservices were up 1.5-6%.

Power stocks like Suzlon Energy, GVK Power, NTPC, Power Grid Corp, CESC and GMR Infra were up 1-7%, which helped the Power Index to close at 2,881.36, up 2.02% or 57.13 points.

In the banking space, SBI, ICICI Bank, PNB and HDFC Bank were gainers. The BSE Bankex rose 95.70 points or 1.17%, to 8,258.43.

The BSE FMCG Index was up just 5.22 points, to 2,096.64 while the Healthcare Index lost 47.21 points, to 3,435.95.

Among the broader indices, the BSE Midcap Index was up 2.46% or 121.18 points, to 5,056.74 and the Smallcap Index went up 3.01% or 175.13 points, to 5,986.82.

In the midcap space, Monnet Ispat, Ipca Labs, Vijaya Bank, Nagarjuna Construction, Exide Industries and HT Media gained 9.5-17%. In the smallcap space, Saras Industries, Dewan Housing, Dhanalakshmi Bank, GIC Housing Finance, Taj GVK Hotels and Mahindra Forgings were up 20% each.

Market breadth was strong throughout the session. About 2193 shares advanced while 672 shares declined on the BSE. Nearly 268 shares remained unchanged.

Volumes were on the lower side compared to previous session. Total traded turnover stood at Rs 98,806.21 crore as against Rs 1,22,918.11 crore on Thursday. It included Rs 27,342.18 crore from the NSE cash segment, Rs 63,060.58 crore from the NSE F&O and the balance Rs 8,403.45 crore from the BSE cash segment.

Global Cues
At the time of closing of Indian equities, the Crude July contract was trading at USD 66.01, up USD 0.93 on the NYMEX (New York Mercantile Exchange).

European markets were strong; the FTSE was up 56 points, to 4,443. The CAC gained 44 points at 3,308 and the DAX rose 65 points, to 4,998.

Among the US futures, the Dow Jones futures went up just 26 points, to 8,410 and the Nasdaq futures gained 6.25 points at 1,424.50.

Asian markets ended higher. Hang Seng and Straits Times went up 1.6% each. Nikkei and Jakarta Composite gained over 0.7%. Kospi rose just 0.27%. Shanghai and Taiwan markets were closed for trade today.