Benchmark indices rallied in trade with sustained buying in heavyweight Reliance Industries pushing indices higher.
The Sensex reclaimed the 27,000 points as dovish comments from the US Federal Reserve helped sentiments. The Sensex ended the day higher by 283 points, while the Nifty gained 83 points in trade.
Housing Finance company shares were in the limelight after the cabinet approved the launch of "Housing for All by 2022" scheme, with interest subvention of 6.5 percent on housing loans. Shares of GIC Housing, LIC Housing, Canfin Homes were all among the movers in trade.
Orchid Chemicals rose after the US FDA gave nod for Gemifloxacin Mesylate tablets. The stock ended the day up 4 per cent.
Shares in Torrent Pharma also gained ground after the FIPB approved Torrent Pharma's proposal to hike FII limit to 35 percent from 13.09 percent.
Midcap shares were also in demand with Voltas and LIC Housing among the gainers. Leading private sector banking stocks finally saw some traction with Infosys and TCS seeing some buying. Cipla, NTPC and Coal India were the only losers in trade.
Meanwhile, markets across the globe were subdued with the Chinese shares plunging in trade. European markets were also lower on ongoing worries in Greece.