The Sensex ended at 17,180, up 158 points and the NSE Nifty ended at 5,103, up 51 points.
Reliance closed at Rs 2,195, higher by 3.3% on the BSE, after having placed a bid for a controlling interest in LyondellBasell Industries.
ITC touched a 52-week high of Rs 269 (up 3.5% for the day) on the BSE. The company recently increased the prices of its cigarette brands, India Kings and Benson & Hedges, by Rs 10 and Rs 5, respectively.
And Tata Steel continued its recent upmove to emerge as the topmost Sensex gainer, delivering returns of 3.9% at Rs 573.
On the loser's side, Bharti Airtel shed 4.4% at Rs 275 due to continuation of the tariff war and Jaiprakash Associates gave up 14% at Rs 229.
The market breadth was strong. Out of 2,675 stocks traded so far, there are 1,643 advancing stocks as against 953 declines.
Reliance topped the value charts on the BSE, with a turnover of Rs 274.54 crore, followed by SBI at Rs 161.40 crore, Tata Steel at Rs 152.19 crore, Bharti Airtel at Rs 128.17 crore and HDIL at Rs 110.92 crore.
Suzlon led the volume charts, seeing total trades of 9.83 million shares. This was followed by Unitech at 6.97 million shares, Bharti at 4.58 million shares, HDIL at 3.22 million shares and Tata Steel at 2.69 million shares.