The Sensex advanced 133 points to provisionally close at 17,333 levels and the Nifty jumped 50 points to close at 5,277.
Meanwhile on the macro economic front, the index of industrial production for the month of February came in at 4.1% as against a market expectation of 6.6%.
The Asian markets also ended on a strong note.
The Nikkei closed higher by 66 points at 9,524 levels, Hang Seng advanced 187 points to close at 20,327 and the Shanghai jumped 42 points at 2,351 levels.
The European markets were trading on a subdued note. The CAC and FTSE were trading marginally lower.
While, the Germany's DAX was trading higher with marginal gains.
Back home, the metal and banking stocks were on the investors radar.
The BSE Metal index was the top sectoral gainer. The index advanced 2.2% or 235 points to 10,956 levels.
Jindal Steel, Hindalco, Sesa Goa, SAIL, JSW Steel, Tata Steel and Bhushan Steel were among the top gainers from this space.
Banking stocks gained on hopes that the Reserve Bank of India might cut down the key rates in the upcoming monetary policy review.
BSE banking index- Bankex jumped 1.6% or 191 points to 11,979.
Canara Bank, Axis Bank, State Bank of India, Indusind Bank, Bank of Baroda and ICICI Bank were the top gainers from this space, up 1.5-4% each.
FMCG, auto, capital goods,, PSU, power, oil & gas and realty stocks also witnessed buying in trades today. The respective indices advanced 0.2-1.5% each.
At the same time, led by the losses in the IT heavyweight stocks such as Infosys, Wipro and TCS the BSE IT index closed lower by over 1% or 69 points at 5,923 levels.
Infosys slipped 2% to Rs 2,750 ahead of the fourth quarter results which are to be announced tomorrow. Wipro and TCS also ended weaker by 1% each.
Among the Sensex stocks, Maruti Suzuki, Hero MotoCorp, BHEL, ITC, Reliance Industries, HUL, Gail India, Tata Power, L&T and Cipla were among the top gainers, up 0.5-4%
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