The Nifty climbing 120.30 points or 1.67 percent to 7342.60.
The broader markets outperformed benchmarks with BSE Midcap and Smallcap indices gaining 2 percen each. The market breadth was strong as more than seven shares advanced for every shares declining on the Bombay Stock Exchange.
ICICI Bank and SBI were leading contributors to Sensex's gains, up 6-9 percent. Hindalco also gained 6 percent and BHEL was up 6.5 percent on order worth Rs 5,600 crore in Tamil Nadu.
HDFC, HDFC Bank, Axis Bank, Reliance Industries, L&T, Hero and Adani Ports were up 1-5 percent.
Mahindra & Mahindra slipped over 2 percent on profit taking. Wipro and TCS lost half a percent as rupee recovered sharply in three trading sessions.
Coal India declined 0.4 percent as its February offtake dropped to 45.5 MT compared to target of 47.13 MT and production was down to 51.01 MT against target of 52 MT.