The Sensex ended the day with gains of 330 points, while the Nifty rallied 98 points in trade at 7631 points. Leading Nifty gainers higher were oil and gas stocks led by ONGC and GAIL. The former gained after reports that there would be an end to a royalty dispute between ONGC and the Gujarat government.
Other heavyweights like Larsen and ICICI Bank also pushed the indices higher. Tech stocks were once again among the gainers after the rupee rallied against the dollar. Notable winners from the space were TCS, Infosys and HCL Tech. Stocks that lost ground in trade from the Nifty were Mahindra and Mahindra and Hero Motor Corp.
Top gainer from the Sensex was Axis Bank which ended the day higher by almost four per cent. Mid cap stocks also saw a good recovery in trade with CESC, Petronet LNG, IFCI and Union Bank seeing sharp gains.
Idea Cellular gained 4 per cent in trade after reports that the MSCI has increased the company's weight in the Index.
Realty stocks also had a good day in trade with notable winners being Oberoi Realty, Anant Raj and HDIL.
Meanwhile, markets in Europe were trading higher led by gains in the German DAX, French CAC and UK's FTSE.