The Sensex shot up by 183.68 points to close at 17,032.51. The key index touched the day's high of 17,083.20 and a low of 16,893.11.

The benchmark rose above 17,000 for the first time since October 21 and has gained more than seven per cent this month on increased buying by Foreign Institutional Investors.

Foreign funds have bought shares worth nearly 15 billion dollars so far this year.

Similarly, the wide-based National Stock Exchange index Nifty shuttled between 5,073.20 and 4,994.00 before ending with a gain of 59.10 points at 5,058.05.

Trading started on the upside thanks to firm global trend and became bullish after the government said stimulus packages to perk up the economy during the slowdown are not likely to be withdrawn this fiscal.

The market received maximum support from stocks in realty, auto, metal and refinery sectors. As the buying activity spilled over a wide-front, 26 of the 30-BSE index stocks closed higher and four settled in negative zone.