The BSE 30-share index, Sensex, resumed higher at 18,411.02 and moved between 18,619.81 and 18,411.20 before quoting at 18,596.09 at 1030 hrs -- net gain of 246.84 points or 1.35 per cent from its yesterday's close.
The NSE 50-share Nifty also gained 79.30 points or 1.43 per cent to 5,633.55.
On a day opposition parties enforced a nation-wide bandh in which allies SP and DMK participated, the government yesterday came out with notifications implementing its reforms decisions taken last week.
The government's resolve to further economic reforms boosted investor sentiment, marketmen said.
Major gainers were BHEL (3.37 pc), Sterlite (2.78 pc), ICICI Bank (2.77 pc), L&T (2.72 pc), M&M (2.36 pc), HDFC (2.19 pc), Tata Power (2.03 pc) and Tata Steel (2.01 pc).
Small-cap and mid-cap indices firmed up on good demand from retail investors.
Meanwhile, Foreign Institutional Investors (FIIs) were the net sellers of Rs 73.67 crore yesterday.
