At close, the Sensex was up 1,109.10 points or 1.54 percent at 73,033.78, and the Nifty was up 358.60 points or 1.60 percent at 22,721.95.

Broader markets also ended higher but underperformed the benchmark indices, with the Nifty Midcap index rising 0.7%, while Smallcap index closing flat.

Biggest Nifty gainers were HCL Technologies, TCS, Shriram Finance, Tech Mahindra and Infosys, while losers included Eternal, Kotak Mahindra Bank, Max Healthcare, Power Grid Corp and Maruti Suzuki.

Except Energy and pharma, all other sectoral indices ended in the green with Information Technology index gained 5%, while Metal, PSU Bank, Auto, Consumer Durables, Realty up 1 percent each.

More than 160 stocks touched 52-week low, including Medplus Health, Tube Investment, Max Healthcare, Maruti Suzuki, Power Grid Corp, Gujarat Energy, Avenue Supermarts, IOC, Vedanta Aluminium, Balkrishna Industries, Reliance Industries, Ramco Cements, Vishal Mega Mart, Bata India, Swiggy, Voltas, Jupiter Wagons, HUL, among others.

Among individual stocks, Aarti Industries shares rose 2.5 percent after the company signed a 10-year strategic and dedicated manufacturing and supply agreement with a leading global speciality chemical company.

RBL Bank shares fell 7.5 percent despite reporting a 170 percent year-on-year surge in standalone profit, while Plastiblends India plunged 8 percent even as its profit jumped 43 percent to Rs 10.65 crore. Karur Vysya Bank shares gained 2 percent after entering into an agreement with Zurich Kotak General Insurance Company.

Among other stocks, Vikran Engineering shares surged 13 percent after its subsidiary signed a Rs 2,941.19 crore term loan facility agreement with the Indian Renewable Energy Development Agency (IREDA).

Polycab India shares declined 2 percent after the National Stock Exchange of India decided to exclude the company from the equity derivatives segment. Meanwhile, HCL Technologies shares jumped 8 percent after reporting a 21 percent year-on-year rise in consolidated profit to Rs 5,132 crore in Q2.