The rupee closed at Rs 66.21 in its last trading session.
Sun Pharma emerged as the star performer and closed 4.03 per cent up at Rs 675.45, while Cipla rallied 1.58 per cent to Rs 592.60.
The 50-share NSE Nifty gained 53.30 points or 0.61 per cent to 8,778.
Tata Steel, SBI, L&T and Sun Pharma advanced 2-5% each.
BSE Realty index zoomed by almost 7% followed by counters like Metal, Oil & Gas, Auto, Banks, Auto, Healthcare and Power, all surging between 1-5%.
Sun Pharma was the best gainer among Sensex components, surging 6.91 per cent
Indian equity markets registered their highest single-day percentage gains since early October.
Fresh buying by domestic institutional investors and better-than-expected June quarter results from some blue-chip companies boosted investor sentiment
Reliance Industries was the top Sensex gainer up 5.6% after the company reported better-than-expected net profit growth at 12% in the second-quarter aided hby higher gross refining margins.
The Sensex and Nifty remained above their key levels of 36,000 and 10,900 throughout the session, indicating strong investor optimism after a prolonged spell of caution.
Bajaj Auto was the top gainer in the Sensex pack, surging 3.95 per cent followed by Maruti Suzuki at 2.69 per cent.
Market breadth is positive with 942 advances and 196 declines.
All sectoral indices, led by realty, PSU, oil & gas and banking, were in positive zone with gains of up to 1.25 per cent.
The broader Nifty of National Stock Exchange scaled the 10,200 mark intra day before closing at 10,184.85, showing a sizeable gain of 38.30 points, or 0.38 per cent.
The Sensex soared 402 points higher to end at 25,720 and the Nifty surged 130 points to close at 7,819.
Markets gained for the second straight session to kick-off the September F&O series on a robust note.
Fear factors weights on markets, Sensex, Nifty struggle to keep pace.
Japan's Nikkei fell 0.5% and South Korea's Kospi lost 1.3%.
Markets snapped two-day losing streak and ended flat with a positive bias on Tuesday as gains in auto shares helped offset losses in IT majors.
ONGC was the top performer while private banking major ICICI Bank extended gains
BSE Bankex, Healthcare, Capital Goods and Consumer Durables ended higher.
Positive cues from the global market front aided the rally.
The breakdown of talks between Greece and its international creditors raised fears of Greece's exit from the euro zone.
Markets closed the day in green on favourable domestic factors,
Accommodative monetary policy has driven a bull market in stocks in recent years, but the Bank of England is expected to raise interest rates early next year and the U.S. Federal Reserve not long after, tempering future gains.
Sensex ended at 26,272 up 125 points and Nifty ended at 7,831 up by 35 points.
The 30-share Sensex ended down 224 points at 28,442 and the 50-share Nifty ended down 101 points at 8,606.
The 30-share Sensex ended down 245 points at 28,799 and the 50-share Nifty closed down 81 points at 8,750
Investors turned cautious ahead of the US Fed meet outcome later today and July F&O expiry.
The 30-share Sensex ended down 604 points at 28,845 and the 50-share Nifty ended down 181 points at 8,757. The Bank Nifty ended down 602 points at 19,146.
Investors engaged in profit booking in the recent gainers at attractive and higher valuations.
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
The 30-share Sensex ended up 140 points at 28,262 and the 50-share Nifty was up 37 points at 8,551.
Infosys, TCS, HUL and Reliance Industries were the top gainers of the day.
Top gainers from the Sensex pack are Asian Paints, Bajaj Auto, ITC, NTPC, L&T and HDFC, all up 2% each
Capital goods shares continued to trade firm in late noon despite weak market trend on the back of encouraging core sector growth in February.
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
Banks stocks continued to trade weak along with FMCG major ITC.
The 30-share Sensex lost 54 points at end at 27,086 and 50-share Nifty shed 19 points to close at 8,096.
Markets ended higher for the second straight session mainly on the back of upbeat corporate earnings.