Stocks posted their best gains so far in 2017 as traders made aggressive long bets on metals, banking, cement and media shares. 

The Nifty surged 1.1 per cent to close at 8,381 points, its highest level since November 11. The index ended at its best level in 2 months and was the second best performing benchmark in Asia. The Nifty rose for the second day on a sharp surge in traded volumes.

Also abetting the bullish sentiment was news from the World Bank which weighed in with its opinion on Prime Minister Narendra Modi's move demonetize the 1,000-rupee and 500-rupee notes. The move to suck out 86 percent of the currency float in less than two months lead to a sharp drop in demand for everything from bikes to luxury items.

“Any reform has short-term costs buy ultimately reforms will bring long-term gains. In the case of  India, we expect whatever the adverse effects of these changing of notes to basically disappear in the medium term,'' Ayhan Kose, Director of Development Prospects Group at the World Bank told said in a conference call.

Here are the major events in today's trade:

* The Sensex gained 241 points to close at 27,140 points on the Bombay Stock Exchange. Coal India was the top gainer while Bajaj Auto lost the most on the Sensex. Tata Steel was the top traded stock.

* Metal stocks were the stars of the day with the spotlight shining brightly on front line shares in the sector such as the Jindal twins, Hindalco, SAIL and Tata Steel. The rally was triggered by news that China may be closing all its medium frequency furnaces by June 2017. Such furnaces contribute less than 10 percent of total Chinese steel production.

* Hindalco, IndusInd Bank, Coal India, Bank of Baroda and Yes Bank gained between 3.9-6.4 per cent on the Nifty. They were among 41 stocks that gained fresh ground on the Nifty.

* Bajaj Auto, Infosys, Reliance Industries, HCL Tech and TCS fell between 0.2-0.9 per cent. They were among 10 stocks that fell on the Nifty.

* IndusInd Bank, Tata Steel and Yes Bank were the top traded stocks by value. Private lender IndusInd Bank soared nearly 6 percent after its earnings beat street expectations. The bank is now trading at 3-month highs.

* Suzlon, Jindal Steel & Power and Hindalco were the top traded stocks based on volume.

* Lupin received final approval for Desoximetasone Cream in different dosages from the US Food and Drugs Administration. 

* Broader benchmarks gained between 1.1-1.3 per cent as investors loosened their purse strings to buy value in a beaten down market.

* The metals index sizzled, jumping 4.3 per cent. The index is trading at its highest level since December 2014.

* The sentiment remained firmly in favour of bulls with 1,738 shares rising versus 1,041 that fell on the exchanges.

* The mood was even more upbeat in the derivatives markets where 149 futures advanced compared with 29 that slipped.