BSE's Sensex gained 718.09 points or 2.15 percent to close at 34,067.40, while NSE's Nifty 50 reclaimed 10,200, rising 220.90 points or 2.20 percent to end higher at 10,250.90.

After two consecutive sessions of losses, the solid comeback was the best gain by the Indian markets in over 2 weeks. They were led by IT, Pharma and banking stocks.

• Among the top five gainers for the day on both the exchanges was ICICI Bank that surged over 10 percent as brokerages bet on the lender based on its Q2 net profit results that it reported on Friday. The bank's net profit for the July-September period fell by 55.84 percent to Rs 908.88 crore from last year but showed improvement in terms of asset quality. Heavyweight stocks like Reliance Industries, L&T, TCS, and Axis Bank also clocked significant gains.
• The Reserve Bank of India's plan to inject Rs 40,000 Crore into the banking system through the purchase of government securities through open market operations in the month of November was well received. The move will help curb any liquidity crunch in the banking season amid festivities.
• US Crude futures fell as much as $68 a barrel today as traders assessed mixed supply signals from producers. It has slumped 12 percent from touching a four-year this month. Slowing demand for oil and weakening of global economic growth also weighed on prices. Benchmark Brent crude was also trading lower at $77 per barrel.
• European stocks opened higher, with UK's FTSE 100, Germany's DAX and French CAC 40 rising by 1 percent.
• PSU Banks surged as much as 8.28 percent, the most since the announcement of bank recapitalization plan last year, owing to the successful resolution of Essar Steel insolvency case and the Supreme Court's order to revive ultra-mega power projects. The index was led by Canara Bank, Oriental Bank of Commerce, Union Bank and Indian Bank.