Benchmark indices surged in trade as global cues remained strong, with Europe trading significantly higher, while most of Asia also closed higher.
The Sensex ended the day with gains of 557 points, while the Nifty ended the day with 158 points. ICICI Bank led gainers for the second day in a row after an Economic Times reports said that the Roseneft-Essar deal would see a direct benefit of $750 million to $1 billion coming in for ICICI Bank.
Shares in Mastek rose 12 per cent, after the company saw net profits doubling for the quarter ending Sept 30, 2016.
Shares in IDFC Bank also ended the day higher, after reports that IDFC Bank will be included in the NSE's Nifty Midcap 50 index from November 15.
Among the smaller cap stocks Shriram EPC rallied 13 per cent, after the company bagged an order from the Karnataka Water Authority.
Among the few stocks that lost ground today was Gujarat Pipavav after Credit Suisse downgraded the stock to underperform and cuts target to Rs 155 per share from Rs 195 per share.
Meanwhile, the rupee saw some gains at 66.70 to the US dollar. Check currency rates here