Reports that the White House and Senate leaders reached a deal early on a massive $2 trillion coronavirus stimulus bill sent global stocks soaring.
The Sensex ended 1,861 points higher in line with most global markets, while the Nifty was up 516 points. The Nifty surged past the 8,000 points mark, while the Sensex scaled past the 28,000 points mark.
The US markets on Tuesday saw the single biggest gains of 11 per cent on the Dow Jones. Most Asian markets too rallied, led by the Japanese markets.
Leading the set of gainers in trade was Axis Bank, which jumped as much as 18 per cent, after hitting a 52-week low. Other gainers were Reliance Industries, ICICI Bank and Maruti.
Among the losers were Yes Bank, ITC, Coal India and ONGC. Shares in AU Small Finance Bank touched a new 52-week low in trade. Shares in ACC too were weak and dropped to a 10-year low.
Meanwhile, European markets opened significantly higher after a spectacular rally seen on Tuesday. The German DAX and the French CAC were up almost 2 per cent.
Markets are expected to be increasingly volatile going ahead and investors are advised to tread with caution. Investors see significant losses, should the markets fall.