The Sensex and the Nifty staged a smart rally in trade after losing heavy ground in the month of April. It was also the first day for the F&O series of May and investors were see buying beaten down stocks.
Leading the set of gainers was ONGC which rallied a huge 5 per cent. Other notable gainers in trade were Bajaj Auto, Cipla, Mahindra and Mahindra and Hindalco.
Shares in Maruti gained after the company's sales figures came in at robust levels for the month of May. Nifty stocks that lost ground were Larsen and Toubro, while ICICI Bank ended the day subdued.
Software stocks ended the day mixed with Infosys gaining ground, while TCS ended the day almost flat and Tech Mahindra lost ground.
Shares in Future Retail and Aditya Birla Nouvo rallied after a proposed demerger. Pantaloon was locked at the upper end of the circuit filter with only buyers in the counter. Aditya Birla Nouvo on the other hand was trading 14 per cent higher.
Meanwhile, markets across Europe were trading sharply higher. The German DAX and the French CAC were trading with gains of near one per cent.