It sent the benchmark CNX Nifty index to its highest close in three years, soaring by a whopping 143.50 points, or 2.37 per cent on the National Stock Exchange (NSE).
Financial stocks stole the spotlight on bourses, followed by FMCG, energy, technology, healthcare, metal, auto and capital goods.
Flourishing overseas sentiment, especially after the US government budget deal and growing speculation that the Federal Reserve will not begin its tapering before 2014 triggered the surge across global financial markets.
Amid the buying spree, IndusInd Bank, Tata Steel, Sesa Sterlite, Axis Bank, JP Associates, BPCL, ICICI Bank, IDFC, L&T and Kotak Bank were among the biggest index stock gainers.
Turnover in the cash segment rose to Rs 12,351.92 crore from Rs 12,148.81 crore yesterday. A total of 6,498.18 lakh shares changed hands in 58,48,237 trades, while market capitalisation stood at Rs 65,70,944 crore.