Mumbai, Nov. 30: Investors today ignored the crisis at Dubai and instead focused their attention on the robust economic growth at home, which sent the sensex soaring by 294 points at the end of a brisk day of trading.

The strong economic data erased worries emanating from the Dubai debt crisis, which had shaved off 3.29 per cent in the previous two trading sessions.

The sentiment on the Street was buoyed by the rally on the Asian bourses, which were fuelled by expectations that the Dubai debt crisis would blow over once neighbouring Abu Dhabi stepped in.

There was also a feeling that domestic companies, that include a clutch of banks, might not be significantly affected by the debt crisis in the Gulf nation.

Though the benchmark index opened marginally higher and initially gained because of positive cues coming from overseas markets, the real push came after GDP data came in. With the economy posting a growth of 7.9 per cent for the second quarter, hectic buying was witnessed in several sectors.

Reflecting the boost in sentiment, the benchmark index, which opened at 16655.75, breached the 17000-level to hit an intra-day high of 17026.91.

However, the momentum could not be maintained and it settled at 16926.22, a gain of 294.21 points or 1.77 per cent.

The broader 50-share Nifty of the National Stock Exchange gained 90.95 points, or 1.84 per cent, to close above the magic figure of 5000 at 5032.70 from its previous close.

The rally on the BSE was led by metal and technology stocks, sectoral indices of which closed up 3.66 per cent and 2.55 per cent, respectively. IT, banks, consumer durables and oil and gas were the other indices which posted gains.

Meanwhile, the firm trend in equities impacted the rupee, which ended stronger by 13 paise at 46.52 against the dollar. The domestic currency moved in the range of 46.34 and 46.55 during the day after resuming higher at 46.44 a dollar against its last close of 46.65 a dollar.

Tata Motors hogged the limelight throughout and scored a 5 per cent rise over its last close to end at Rs 660.90 after the country's largest truck maker reported better-than-expected working on a consolidated basis.

The head of research with a leading brokerage, who did not wish to be Identified, said stocks could be in for more gains in the days ahead given the good news relating to the domestic economy.

However, Arun Kejriwal, director, KRIS was cautious. “It is very difficult to come to a definite conclusion on how the markets will behave. They will increasingly be news driven,” he added.