The Nifty closed above 17200, leading the benchmark indices higher, with IT and FMCG firms leading the way. The Sensex was up 514.33 points, or 0.90 percent, at 57852.54, while the Nifty was up 157.90 points, or 0.92 percent, at 17234.20 at the closing.
The top gainers on the BSE Sensex were Dr. Reddy's Laboratories, Titan Company, UltraTech Cement, Tata Steel, Bajaj Finserv, Tata Consultancy Services (TCS), and HDFC.
Among the top index laggards were HCL Tech, Asian Paints, Power Grid Corporation of India, ICICI Bank, Infosys, and Maruti Suzuki. All other sectoral indices are trading in the green, with the exception of auto and PSU Bank. The BSE midcap and smallcap indices are both up more than 0.5 percent.
The sectoral indices of the Nifty traded in a range of directions. Nifty Auto, Nifty Private Bank, and Nifty Realty all declined by 0.11 percent to 36,533.
Markets extended their gains in the afternoon session, thanks to traders' continued buying. A private assessment said that the ongoing economic recovery will swiftly lift India above pre-pandemic levels in most sectors of the economy.
Reliance Industries (RIL) shares rose 1.3 percent in intraday trade on Thursday, hitting an 11-month high of Rs 2,299 on the BSE, on reports that the company is looking to buy Europe's largest solar panel producer.