The Sensex gained 1,439.12 points to a high of 29,030.07 after resuming trading on Tuesday.
Following rise in equities, the market capitalisation of the BSE-listed firms zoomed Rs 4,65,715.85 crore to Rs 1,13,32,438.81 crore.
Equity markets were closed on Monday for 'Mahavir Jayanti'.
Heavyweights Reliance Industries Ltd and HDFC Bank were the biggest contributor in the market rally, trading over 7 per cent and 5 per cent higher, respectively.
Bajaj Finance was the sole loser in the frontline 30-company pack.
The 30-share BSE barometer had plummeted 674.36 points or 2.39 per cent to close at 27,590.95 on Friday.
Markets rose on Tuesday largely tracking recovery in global equities.