Dalal Street saw investors hunting for bargains in recently-battered bank, auto and metal stocks, that came under the weather in the previous session on the back of the central bank's decision to hold repo rates in its sixth bi-monthly monetary policy meeting.
Similarly, the broader NSE Nifty soared 122.60 points, or 1.22 per cent, to close at 10166.70 after hovering between 10061.90 and 10182.65.
Market breadth was positive with 1,272 advances against 316 declines. Participants sensed value-buying opportunities after the equities' recent lacklustre run, making stock valuations attractive, according to market participants.
The Sensex and Nifty were trading higher in early morning amid higher Asian shares as investors awaited major economic data from China and the United States. Domestic institutional investors bought shares worth Rs 995.11 crore, while foreign funds sold shares to the tune of Rs 1,217.92 crore on Wednesday, provisional exchange data showed.
All the 19 sub-indices of the BSE ended in the positive territory, led by the S&P BSE FMCG index, which augmented by 2.23 per cent, followed by the metals index by 1.36 per cent and the auto index.
In contrast, Hero MotoCorp, SBI, Reliance Industries, TCS, Asian Paint and Dr Reddy's succumbed to profit-booking. In keeping with the overall trend, the small-cap and mid indices rose 1% and 0.89%. Japan's Nikkei witnessed an early gain of 0.9 per cent, adding to Thursday's 1.45 per cent bounce.
Gold prices drifted lower by 0.27 percent to Rs 28,589 per 10 grams in futures trade today as participants cut their bets amid a weak global trend.