Mumbai: Led by HPCL (Hindustan Petroleum Corporation Limited), stocks rallied sharply lifting the SENSEX past 3300-mark at close on the Bombay Stock Exchange (BSE) on December 6 as the government resolved the impasse over the disinvestment of oil PSUs (Public Sector Undertakings) barely two days ahead of the deadline set for sorting out the issue.

In an unprecedented rally, HPCL flared up by Rs 49.75 on hectic buying prompted by reports that the government has hammered out a consensus formula for the disinvestment of HPCL through strategic sale and of BPCL (Bharat Petroleum Corporation Limited) via market route.

Enthused by resolution of the crisis which would pave for divestment of other PSUs that are pending for strategic sale, investors made all-round heavy purchases in key old economy stocks lifting the SENSEX by a whopping 76.56 points or 2.37 per cent to close at 3306.29 as against yesterday's close of 3229.73.

The broad-based BSE-100 Index also flared up by 42.72 points to settle at 1632.98 from previous close of 1590.26.

Brokers said retail investors and speculators as well as foreign funds were heavy buyers in a number of blue-chip counters.

The price rally was so strong that the market even discounted the overnight sharp slide in New York stocks, which pushed the Dow Jones Industrial Average down by about 115 points and the Nasdaq Composite Index by 19.57 points.

Other PSU stocks like EIL, HMT, Nalco, RCF, SCI, Neyveli Lignite, BEML, BPCL, ITI Ltd, Dredging Corp, STC India, BEL, IOC and ONGC also scored impressive gains on heavy buying support.

SBI too rallied sharply rising by 5.15 per cent on good buying enquiries.

PTI