Stocks that touched their 52-week high include Indraprastha Gas, JSW Steel, NTPC, PTC India, PVR, State Bank of Bikaner and Jaipur, State Bank of Travancore, Simbhaoli Sugars, Tata Sponge Iron and Tata Metaliks.
The Sensex closed at 26,726.34, reflecting a gain of 330.63 points or 1.25 per cent. It had lost 625 points in the previous four trading sessions.
"Stocks added to yesterday's late surge in an attempt to break free of the fear from the event risks lined up ahead which had put prices under pressure for the last four days," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd.
Among the sectoral indices, capital goods rose by 2.26 per cent followed by utilities 2.06 per cent, power 1.99 per cent, bankex 1.38 per cent and IT 1.31 per cent.
At the BSE, 953 stocks advanced, while 1,545 declined and 163 remained unchanged.