Sensex, Nifty gain over 2% on global rally

The Sensex and Nifty gained more than 2 per cent on Thursday, posting their biggest daily gains in two weeks, as upbeat global equity markets sparked a wave of bargain-hunting ahead of the expiry of derivative contracts at the end of the session.

The benchmark BSE Sensex closed 2.01 percent and rose most since August 14.

The broader Nifty rose as much as 2.02 percent. The market was bouyed by global rally with Wall Street registering its biggest one-day gain in four years on Wednesday as fears about China's economy gave way to bargain hunters emboldened by expectations the US Federal Reserve might not raise interest rates next month.

In US, S&P 500 closed almost 4 per cent higher.

The Shanghai Composite In China also closed 5.34 per cent higher with volatility in stocks falling significantly from previous sessions.

In Asia, Hang Seng and Nikkei closed 3.54 per cent and 1.08 per cent higher, respectively.

(With Reuters inputs)