Benchmark indices ended the day higher, led by solid gains in banking and oil and gas stocks. Global cues remained robust, which led to the sharp rally, after US markets closed higher.
The Nifty gained 30 points in trade. Leading the set of gainers in trade were ONGC, following a sharp spurt in the price of crude oil. Other stocks that gained was Axis Bank, HDFC and Mahindra Mahindra.
Motherson Sumi ended 10 per cent higher, following a good set of quarterly results.
Syndicate Bank ended the day lower ahead of results to be declared later today.
Stocks from the Nifty that lost ground in trade were NTPC, Hindustan Unilever, Bharti Airtel and HDFC Bank.
Shares in Sun TV gained on reports that the DMK may win elections in Tamil Nadu. J&K Tyres gained 2 per cent after the company's net profit rose 10 percent.
PSU banking stocks saw some recovery in trade with Bank of India and Oriental Bank of Commerce leading gainers in trade.
Meanwhile, markets across Europe were trading lower, following good gains.