The Sensex opened with a positive gap of 17 points at 8,761, which turned out to be the low for the day.
Sustained buying saw the index zoom to a high of 8,864 towards the closing bell. The Sensex finally closed with a gain of 109 points (1.3%) at 8,853.
The Nifty gained 33 points to close at 2,668.
HLL zoomed 5.7% (Rs 10) to Rs 187. SBI was up Rs 7 at Rs 907, and ITC gained Rs 2 to Rs 136.
Infosys moved up 1.5% (Rs 39) to Rs 2,740. Satyam advanced Rs 15 to Rs 657. TCS was up Rs 9 at Rs 1,533.
Maruti was up 3.5% (Rs 21) at Rs 620. Tata Motors gained 3.3% (Rs 18) to Rs 574.
BHEL zoomed 3.5% (Rs 47) to Rs 1,385. HDFC added 3% (Rs 32) to Rs 1,118.
L&T gained 2.7% (Rs 44) to Rs 1,644. Ranbaxy moved up Rs 9 to Rs 371. ACC, Bharti, ICICI Bank, Grasim and Reliance Energy also finished with gains.
ONGC was down Rs 5 at Rs 1,020. Reliance declined a rupee to Rs 843. Tata Power and Hindalco also declined.