Mumbai, Oct. 29: The BSE Sensex and the Nifty today hit their highest close in five weeks, taking cue from the global markets which rallied on expectations that the US Federal Reserve would reaffirm its willingness to keep interest rates low for some time.

Though the Fed was widely expected to end its bond-buying programme today, investors were not perturbed even as the move would lower inflows into India. Instead, the BSE Sensex breached the 27000-mark and the Nifty came closer to the 8100-level.

Late tonight, the Fed announced that it would terminate its bond buying programme at the end of this month.

Global stock markets, including India, were rattled last year when Ben Bernanke, the former Fed chairman, had announced plans to taper bond purchases.

While the central bank has since then brought down purchases periodically, stock prices in India have rallied largely on account of domestic factors that included the formation of a stable government at the Centre.

The 30-share BSE benchmark index opened above 27000 at 27017.44. Though it hit a low of 26971.16, it bounced back to settle at over a five-week high of 27098.17, a rise of 217.35 points, or 0.81 per cent. The 50-share CNX Nifty of the NSE also shot up 62.85 points, or 0.78 per cent, to end at 8090.45.

Both the indices are at their highest closing peaks since September 22. In seven trading sessions, the Sensex has risen over 1196 points.

The stock rally has also been fuelled by hopes that the Centre will press for more reforms, while lower crude prices will have a positive impact on inflation and interest rates.

ahead of the expiry of domestic derivatives contract also contributed to the 217 point surge.

'Improvement in the global markets have added flair to India. Global investors expect that Fed will slower its taper, or as the taper is stopped, the ECB (European Central Bank) will push liquidity button,' Vinod Nair, head of fundamental research, Geojit BNP Paribas Financial Services, said.

Key indices in Asia ended higher in the range of 0.81-1.84 per cent. Indices in France, Germany and the UK moved up 1.74-2.12 per cent.