Expectations of healthy quarterly results, along with hopes of a sales boost from the ongoing festive season, lifted the key Indian equity indices higher during the special "Muhurat" trade session on Diwali on Sunday.

Market observers said that broadly positive global cues and low crude oil prices also aided in the market's northward movement.

The special hour-long session held every year on Diwali day to mark the start of the Hindu New Financial Year saw the key equity indices -- S&P BSE Sensex and NSE Nifty50 -- make gains.

As per market data, the special session to mark Samvat 2076 witnessed healthy buying in automobile, banks and capital goods stocks and the Nifty50 of the National Stock Exchange (NSE) gained 44.10 points or 0.38 per cent to close at 11,628 points.

Similarly, the 30-scrip sensitive index (Sensex) made gains during the trade session.

The S&P BSE Sensex, which opened at 39,397.37 points, closed at 39,250.20 points -- up 192.14 points or 0.49 per cent from Friday's close of 39,058.06 points.

"Markets ended the Muhurat trade in positive zone... Industrials, auto and small-cap indices rose, while telecom and consumer durables indices fell," HDFC Securities' Retail Research Head Deepak Jasani told IANS.

"Unlike normal Muhurat days, the session ended protecting part of the initial gains. This gain portends some more gains in the near term and likely scaling of a new high in the next few weeks."

Motilal Oswal, Managing Director and CEO, Motilal Oswal Financial Services, said: "I am optimistic about the medium to long term perspective. I see tremendous interest amongst foreign investors. Brand India is at it all time high. Government is also proactively addressing many basic issues.

"After the Big Bang corporate tax cut, I am hopeful that there will be individual income tax rate cuts and see many more reforms on the way."

The special Muhurat trading session, is considered to be auspicious for stock market trading. It is believed that the Muhurat trading on this day brings wealth and prosperity throughout the year. This ritual has been observed for ages by the trading community, as the Hindu new financial year begins with the next day after Diwali.

The Indian equity market will be closed on Monday, October 28, to mark Diwali Balipratipada.