Benchmark indices opened the day higher, as oil rebounded from lows with Brent trading near the $30 levels. Most Asian markets were higher after European Central Bank President Mario Draghi said: "It will therefore be necessary to review and possibly reconsider our monetary policy stance at our next meeting in March."
This led to a sharp rally in European indices, pushing US markets higher as well. Asian markets took cues from the markets in the West and were trading higher.
Shares in Interglobe Aviation slumped 5 per cent, despite a good set of numbers. Idea too fell near 4 per cent, after its net porfits lagged estimates.
ONGC and Oil India both recovered after Brent Crude rallied near the $30 per barrel mark. Metal and mining stocks, which have crashed to 52-week lows in the recent past, saw some buying support with NMDC and Coal India among the gainers.
Midcap stocks also surged largely led by banking names like Canara Bank and Oriental Bank of Commerce.
Meanwhile, most Asian markets were trading sharply higher led by gains in the Japanese Nikkei, which was up near 3 per cent and the Hang Sang, which gained more than 1 per cent.