Equity benchmark indices extended early gains and closed 2.2 per cent higher on Wednesday with metal and banking stocks gaining smart margins.
The market sentiment was upbeat after an expansion of the country's vaccination drive while easing US bond yields also boosted risk appetite.
The BSE S&P Sensex closed 1,148 points or 2.28 per cent higher at 51,445 while the Nifty 50 surged by 327 points or 2.19 per cent to 15,246.
Except for Nifty auto which slid by 0.6 per cent, all sectoral indices at the National Stock Exchange were in the green with Nifty metal up by 3.3 per cent, PSU bank by 3.1 per cent and private bank by 2.7 per cent.
Among stocks, Tata Steel rose by 5.3 per cent to Rs 774.80 per share while Hindalco and JSW Steel moved up by 3.9 per cent and 3.2 per cent respectively.
Index heavyweight Reliance Industries advanced by 4.8 per cent to close at Rs 2,207.10 per share. Bajaj Finserv was up by 4.9 per cent, Bajaj Finance by 4.2 per cent, ICICI Bank by 3.5 per cent and SBI Life by 3.1 per cent.
However, auto stocks skidded with Hero MotoCorp down by 1.5 per cent to Rs 3,422.00 per share. Bajaj Auto and Maruti Suzuki slipped by 1.1 per cent each, Mahindra & Mahindra by 1 per cent and Eicher Motors by 0.05 per cent.
Ircon International was down by 6.9 per cent to Rs 91.10 per share as the offer for sale opened for up to 16 per cent government stake at a floor price of Rs 88 per share in the railway PSU.
Meanwhile, Asian shares edged higher as investors shrugged off concerns that stocks may have rallied too far too fast in the past year.
Hong Kong's Hang Seng index was up by 2.7 per cent as inflation fears eased. Japan's Nikkei stock index rose by 0.51 per cent as hopes for economic rebound boosted cyclical stocks.
South Korea's Kospi ticked up by 1.29 per cent and Shanghai Composite Index moved up by 1.95 per cent as policy anxiety eased.
( With inputs from ANI )
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