MUMBAI: Snapping two days of losses, the Bombay Stock Exchange benchmark Sensex closed 200 points higher today on heavy buying in energy giants RIL and ONGC in the wake of a hike in fuel prices.

In sharp contrast to other major Asian peers, the 30-share index opened in positive territory and remained in the green for the entire session. The barometer ended at 17,774.26, higher by 199.73 points, or 1.14 per cent.
The wide-based 50-share Nifty index of the National Stock Exchange also ended 1.22 per cent higher, at 5,333.50 points. Analysts said the market rallied strongly on sustained buying and closed near the day’s high. A good opening on the European exchanges provided a further boost to the market, with the Sensex touching a high of 17,794.80 in the final hour of trade.
Oil stocks continued their upward journey for the second day in a row on account of the recent revision in the policy regarding pricing of auto fuel and other petroleum products. ONGC zoomed 3.1 per cent, Oil India 2.34 per cent, HPCL 8 per cent and BPCL 3.39 per cent.
On the whole, oil and gas stocks surged as much as 14 per cent in the trading session.
“Investor confidence is high as the government’s decision to decontrol fuel prices will help to pare fiscal deficit and will boost the financial health of oil companies,” CNI Research Chairman and Managing Director Kishore P Ostwal said.
Last Friday, the government decontrolled the retail price of petrol, revised the prices of cooking fuels and announced its intention to gradually decontrol diesel prices. However, some have voiced fears about the impact the fuel price hike will have on inflation and the consequent measures that the RBI will take to control it. The country’s most valued firm, Reliance Industries jumped 2.33 per cent, after the company said it has made a seventh oil discovery in a Gujarat block. RIL carries the maximum weightage in the
benchmark indices.
The market could maintain its bullish trend on strength of CD, Oil & gas, infrastructure, technology, telecom, financial and metal companies’ shares, brokers informed.
Oil & gas companies’ shares remained star performers as well as most active for the second consecutive day, after the government deregulated petrol prices. 
European markets as well as US index futures were quite supportive today in the last couple of hours. The key benchmark indices in France, Germany and UK, were up between 0.44 pc to 0.98 pc.
Most Asian stocks also rose. The key benchmark indices in China, Taiwan, South Korea, Indonesia, Hong Kong and Singapore rose between 0.17 pc to 0.64 pc. The market breadth was strong. On BSE, 1,761 shares advanced while 1,114 shares declined. A total of 103 shares remained unchanged. From the 30-share Sensex, 24 stocks rose and the rest fell. The turnover was of Rs 4201 crore, lower than Rs 4491.90 crore on Friday last.
European markets started strong, but gave up some of the gains on profit booking amid unclear signals from the G20 meeting. Leaders of the G20 countries left room for individual nations to manoeuvre their economies, leaving investors confused over what it would mean to the global economic revival process.
In Britain, the benchmark index, FTSE 100 was ruling 0.57 percent higher at 5,075.02 points, while the French CAC 40 was up 0.87 percent at 3,550.38 points.
The German DAX was trading 0.88 percent higher at 6,123.85 points.