The Sensex ended the day 352 points (provisional), while the Nifty rallied almost 119 points as investors bought into banking stocks following the RBI Monetary policy.
ICICI Bank, HDFC Bank, Yes Bank, while PSU banks like Syndicate Bank, Union Bank, IDBI Bank and Allahabad Bank joined the party.
The RBI move to ease liquidity through short term measures was one of the reasons why banking stocks rallied.
Other Nifty gainers apart from the banking stocks was Maruti Suzuki which surged 6 per cent, following its results, which were better then expected.
Metal stocks also gained in trade today with Tata Steel jumping 4 per cent and Sesa Goa rallying more then 3 per cent. There were practically no losers from the Nifty pack in trade.
Mid cap stocks also had a good session of trade with Karnataka Bank jumping 5 per cent, while Crompton Greaves, Jain Irrigation and Jubilant Foods rose 3 per cent each.
Heavweights, Reliance and ITC joined the rally gaining more then 1 per cent each.
Shares in DCM Shriram lost as much as 11% after the company reported a disappointing set of results. Lanco Infra on the other hand jumped after the company's results beat street expectations.
Real estate and Auto stocks also had a good day following the RBI monetary policy.
Meanwhile, markets in Asia ended the day mixed with the Straits Times and Korean Seoul Composite gaining, while the Chinese Shanghai Composite and the Japanese Nikkei dropped.