Heavyweights Reliance, Yes Bank, Vedanta and Sun Pharmacontributed the most to the gains on the Sensex.
Domestic stock markets started Thursday's session on a positive note, taking cues from Wall Street as US stocks recovered from heavy losses after the White House assured that US President Trump had no intention of firing the US Federal Reserve chairman.
The SP BSE Sensex rose as much as 391.3 points to touch 36,041.24, while the Nifty50 barometer of the National Stock Exchange surged 94.95 points to 10,824.80.
The gains on Dalal Street were led by IT, metal, FMCG and auto stocks.