All the sectors were trading in green and the rally was led by capital goods, banking, metal and healthcare sectors.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,179.55 points, was trading at 25,389.52 points in the pre-noon session, up 289.60 points or 1.15 percent from the previous day's close at 25,099.92 points.
The Sensex touched a high of 25,404.33 points and a low of 25,179.55 points in trade.
The S&P BSE capital goods index gained 412.16 points, bankex surged by 334.23 points, metal index went up by 145.40 points and healthcare index increased by 174.05 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also surged and was trading 88.15 points or 1.17 percent up at 7,596.95 points.