Extending its gains for the second session, equity benchmark Sensex jumped 371 points on Tuesday driven by aggressive buying in financial stocks amid hopes of another stimulus package by the government.
After a volatile session, the 30-share BSE gauge settled 371.44 points or 1.17 per cent higher at 32,114.52. It hit an intra-day high of 32,199.91 and a low of 31,661.34.
Similarly, the NSE Nifty advanced 98.60 points, or 1.06 per cent, to close at 9,380.90.
IndusInd Bank was the top gainer in the Sensex pack, rallying over 15 per cent, followed by Bajaj Finance, HDFC, Axis Bank, ICICI Bank, M&M and SBI.
On the other hand, Sun Pharma, Nestle India, NTPC, HCL Tech and Bajaj Auto were among the laggards.
The Reserve Bank of India's massive liquidity booster to the mutual fund industry continued to spur buying in financial stocks, traders said.
Expectation of another stimulus package by the government has also buoyed investor sentiment, they added.
Bourses in Hong Kong and Seoul ended on a positive note, while Shanghai and Tokyo settled in the red.
Stock exchanges in Europe were trading significantly higher in early deals.
International oil benchmark Brent crude futures advanced 1.95 per cent to USD 23.52 per barrel.
On the currency front, the rupee rose by 7 paise to provisionally close at 76.18 against the US dollar.
Meanwhile, global tally of coronavirus infections has crossed 30 lakh, with over 2.11 lakh deaths.
Death toll from COVID-19 in India rose to 934, while total number of cases climbed to 29,435, as per health ministry data.