Benchmark indices ended the day higher, as Asian and European markets recovered as fears of a Brexit receded, following the killing of a UK politician, which many believe would now turn the tide against a Brexit.
The Sensex ended the day with gains of 100 points, while the Nifty rallied 16.75 points in trade.
Leading the set of gainers in trade were HDFC, Tata Motors, Coal India, Bharti Airtel and ITC.
Sugar stocks, most of which hit 52-week highs, took a pounding in trade after the government raised duties in order to tame prices.
Shares in Kajaria Ceramics ended higher after the company's board approved a stock split from Rs 2 to Rs 1.
Shares in Carborundum Universal also gained after foreign investors were allowed to buy higher shares in the company.
Meanwhile, the rupee recovered some ground as fears of Brexit receded. The currency was last trading at 62.07 to the US dollar. Check currency rates here.