The S&P BSE Sensex rose as much as 0.9 percent or 341 points to 38,059 and the NSE Nifty 50 Index climbed 1 percent or 115 points to 11,485.
Indian equity benchmarks rose sharply along with the rupee paced by gains in Sun Pharma, State Bank of India and Maruti Suzuki.
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The mid- and small-cap shares were in line with their larger peers as the S&P BSE MidCap Index rose 0.9 percent and the S&P BSE SmallCap Index advanced 0.8 percent.
Seventeen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal, Healthcare and Oil & Gas Indexes 1.3 percent gain. On the flipside, the S&P BSE IT Index was top loser, down 0.8 percent.
