The benchmark indices surged 1.8 per cent on the back of strong gains in capital goods, banking, energy, and auto stocks on Tuesday.
At close, Sensex climbed 1.81 per cent by 1,397.07 points to 78,583.81, while the Nifty advanced 1.6 per cent by 378.20 points to 23,739.25, witnessing a sharp bounce back.
Throughout the trading session, the Nifty reached a high of 23762.75 and a low of 23423.15 while the Sensex exhibited similar growth, trading within a range of 78658.59 and 77402.37.
On the sectoral front, except FMCG, all other sectoral indices ended in the green with Nifty PSU Bank, Infra, Energy and Oil & Gas up 2 per cent each.
Nifty Midcap index added 1.6% and Smallcap index rose 1%.
Indian rupee ended 12 paise higher at 87.07 per dollar on Tuesday versus Monday’s close of 87.19.
On Nifty, the leading gainers were Shriram Finance (5.60%), Larsen & Toubro (4.56%), Bharat Electronics (3.78%), Adani Ports & Special Economic Zone (3.71%), and Indusind Bank (3.40%).
While on the losing side were Trent (6.27%), Britannia Industries (1.51%), Hero Motocorp (1.16%), Nestle India (0.76%), and Eicher Motors (0.62%).
Bank Nifty concluded at 49210.55, having reached an intraday high of 50206.6 and a low of 49482.5.
Bajaj Finance, Mahindra & Mahindra (M&M), UPL, SRF were among stocks that hit their 52-week highs on the BSE.
Among the individual stocks, shares of Divi’s Laboratories briefly rose by over 5% as investors reacted positively to the company’s strong earnings performance for the December quarter.
Godrej Properties reported a 163 per cent spike in consolidated net profit, rising to Rs 163 crore for the quarter ending December 31. Further, the shares of Larsen & Toubro jumped nearly 5 per cent.
FMCG sector shares continued their downward trend for the second day, reversing the initial boost following the Budget.
United Breweries fell by 2.91 per cent while Godrej Consumer Products declined by nearly 2%. ITC Hotels fell over by 0.011% and Colgate by 0.38%.
Market sentiment remained upbeat ahead of the Reserve Bank of India’s bi-monthly policy announcement scheduled for Friday.