Benchmark indices surged in trade led by Tata Motors, which jumped 13 per cent, following quarterly numbers that raised optimism.
The Sensex was trading higher by nearly 600 points, while the Nifty was up 170 points in trade. Shares in Yes Bank continued to gain momentum and were up 5 per cent.
Heavyweight, Reliance Industries hit a new 52-week high on the back of restructuring of the telecom business.
Shares in Marico fell after the company's net profits and revenues largely missed estimates. Net profits at the company were up 16.5 per cent at Rs 247 crores, which slightly lagged estimates.
Shares in Lakshmi Vilas Bank were locked at the lower end of the circuit filter, with only sellers in the counter.
Among the Nifty losers was Bharti Airtel, which fell after the telecom giant delayed its quarterly numbers. The shares were down 5 per cent at Rs 353.
Meanwhile, most of the Asian markets were trading steady. In the US markets, the S&P 500 hit a new record high on increasing optimism that a trade deal with China would go through.