Expected government action on deficits, anticipation of a RBI rate cut and a likely liquidity injection decision from Euro Zone fuelled a rally in the stock indices. The Nifty and the Sensex rose more than 2.7 per cent with the Nifty closing at 4997, up 134 points (2.75 per cent). The Sensex added 434 points to close at 16,454 (2.71 per cent).