The BSE Sensex rose 519.11 points or 1.49 percent to end at 35,430.43 while the NSE Nifty surged 159.80 points or 1.55 percent to finish at 10,471.
All sectors ended in the green.
Top gainers in the Sensex pack were LT, Bajaj Finance, IndusInd Bank, NTPC, Powergrid, M&M, Axis Bank, Ultrachem, HUL, Nestle, SBI and Kotak Bank, rising upto 6.68 percent. Bucking the trend RIL, Bharti Airtel, and Maruti Suzuki ended in red, falling upto 1.55 percent.
The rupee meanwhile appreciated 37 paise to provisionally close at 75.66 against the US dollar. Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 424.21 crore in the previous trading session on Monday, according to provisional exchange data.
In the previous session on Monday, Sensex gained 179.59 points or 0.52 percent to end at 34,911.32 while the NSE Nifty ended 66.80 points or 0.65 percent higher at 10,311.20.