MUMBAI: The BSE benchmark sensex rallied over 400 points in pre-noon trade on speculations that Federal Reserve could maintain monetary stimulus to the U.S. economy next year on fears of the 16-day partial U.S. government shutdown, which ended this week, curbing economic growth there. The rupee also breached the 61 v dollar mark.

The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Thursday. They bought shares worth net 1,109.93 crore yesterday, as per provisional data from the stock exchanges.

Shares of banking, realty, metal and refinery sectors moved up sharply on good demand from operators and investors

Earlier, the BSE-30 share barometer sensex resumed higher at 20,486.78 and firmed up further to a high of 20,673.44 before quoting 20,660.07 points at 10.30am.

It showed a gain of 244.56 points or 1.20 per cent from its last close.

The NSE 50-share index Nifty also moved up by 74.55 points or 1.23 percent to 6,120.40 at 1030 hours.

Major gainers were ICICI Bank (2.88 percent), SSLT (2.53 percent), Tata Steel (2.52 percent), HDFC Bank (2.23 percent) and Maruti Suzuki (1.98 percent).

Asian markets were trading mostly higher after latest data showed that China's economic growth accelerated in Q3 September 2013.

Key benchmark indices in Singapore, China, South Korea, Hong Kong and Taiwan rose by 0.13-0.68 percent while indices in Indonesia and Japan fell 0.05-0.06 percent.

U.S. stocks ended mostly higher on Thursday, lifting the S&P 500 to a record finish, as Wall Street turned from the latest fiscal drama on Capitol Hill to corporate earnings.

Meanwhile, the he rupee rallied to a two-month high of 60.92 against the U.S. dollar in late morning deals today on persistent selling of the USD by banks and exporters on the back of sustained capital inflows from foreign funds.

The domestic currency resumed higher at 61.19 per dollar as against the last closing level of 61.23 at the Interbank Foreign Exchange (Forex) Market.

It firmed up further to a two-month high of 60.92 per dollar before quoting 61.01 per dollar at 1050 hours, showing showed a gain of 22 paise from its last close.

It moved in a range of 60.92 and 61.20 per dollar during the morning deals.

Sustained foreign capital inflows from foreign funds in view of strong domestic market mainly boosted the rupee value against the dollar, a Forex dealer said.

In New York market, the dollar fell yesterday as U.S. lawmakers reached a deal to avoid default and end the 16-day partial government shutdown, with currency analysts now looking at another Washington showdown, possibly early next year.

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