In what appears to be an upshot of the low base effect set in 2008 August, the Index of Industrial Production (IIP) this August touched double digits - rising to 10.4 percent from the month-before figures of 7.2 percent.

With the factory output also recording a strong year-on-year growth - which last year was 1.7 percent - India's Finance Minister Pranab Mukherjee further boosted the confidence by saying that the country was on its way to recovery and higher growth was apparently feasible.

Expressing a similar opinion, M Govinda Rao, Director of NIPFP, said that there are indications of the industrial growth gathering momentum. Rao also added that the IIP figures will likely clock above 10 percent for the remaining part of the year too.

However, expecting the 'weak' monsoon to possibly wreck the gross domestic product (GDP), Rao said that the GDP figures will probably be in the range of between 6 percent and 6.5 percent in spite of the high industrial production.

Statistically speaking, stimulus measures helped the manufacturing sector grow by 10.2 percent in August, with electricity and mining sectors also showing double-digit expansion - by 10.6 percent and 12.9 percent respectively.

Meanwhile, gains in consumer durables, IT and banking also helped the market surge - while Nifty crossed the 5,000 mark again to close at 5048; and the Sensex topped the psychological 17,000 mark, and ended at 17,036.