The Sensex ended the day higher by 270 points (provisional), while the Nifty rallied 76 points in trade. Gains in the Nifty were led by banking stocks which rose sharply. ICICI Bank, Axis Bank and IndusInd Bank led private sector banking gainers.
On the other hand Bank of Baroda, Punjab National Bank and Canara Bank were the PSU banking stocks that staged a smart recovery in trade.
Metal stocks were the other set of stocks that rallied sharply led by solid gains in Hindalco and Sesa Sterlite.
Shares in Maruti Suzuki ended the day marginally higher despite strong market sentiments after FII holding in the stock limit was reached.
Shares in Power major, NTPC hit a 52-week low along with real estate developer Unitech. Sun Pharma and TCS were the only stocks that were subdued in trade from the Nifty.
Mid cap stocks also had a spectacular run with Crompton Greaves, Karnataka Bank and Oriental Bank of Commerce all rallying more than three per cent.
However, McLeod Russell dropped marginally lower and ended the day with losses. Meanwhile, markets across Asia ended the day higher after reports that Putin had asked troops to return back to base from Ukraine.
Among the markets that gained were the Hong Kong's Hang Sang, the Singapore's Strait Times and the Japanese Nikkei. European markets were also trading higher by more than one per cent at the time of closing of Indian markets.