Benchmark indices rallied sharply in trade on hopes that there would be a deal with Greece and the lingering worries of Greece leaving the Eurozone would be shelved at least for now.
Eurozone leaders descended in Brussels for a summit which would play a crucial role in whether Greece would be provided with aid and prevent a default on a crucial €1.6bn IMF loan
The Sensex rallied 414 points in trade and the Nifty was up 128 points as investors bough heavily in frontline banking stocks on hopes of a Greece resolution.
Other notable winners were from the Tata group including the likes of Tata Motors, Tata Power and Tata Steel.
Reliance Industries which had rallied sharply in trade in the last few sessions gave up gains and ended the day lower. Bharti Airtel and Wipro were the other losers in trade.
Shares in Wockhardt jumped 3 per cent after reports that the company had got US FDA nod for analgesic drug Oxycodone hydrochloride.
Meanwhile, markets across Asia ended the day with sharp gains, while Europe was trading higher on hopes of a Greece resolution. The German DAX was up one per cent, the French CAC 3 per cent and the UK's FTSE up one per cent.