The capital market turned bullish on the hopes that the US Government's partial shutdown would slow down the US Federal Reserve plans to taper monetary stimulus proposals.
The benchmark Sensex gained 385 points to 19,902, the highest in the last one week. The Nifty was up 129 points at 5,910.
All the indices on the BSE were up, except for the fast moving consumer goods index.
Jet Airways surged 4 per cent to Rs 387 after the Securities and Exchange Board of India gave its approval to the proposed 24 per cent stake sale to Abu Dhabi-based Etihad Airways.
State-owned MOIL was up 2 per cent at Rs 208 on the back of the company increasing manganese ore prices for the December quarter.
United Breweries and GlaxoSmithkline Consumer Healthcare were up 2 per cent each while Glenmark Pharmaceuticals gained 0.20 per cent. All these three stocks were approved for trading in the futures & options segment on the NSE.
Tata Communications surged 4 per cent to Rs 210. The stock gained 8 per cent on Tuesday triggered by the announcement regarding a potential acquisition of 100 per cent stake in Neotel by Vodacom SA.
Major gainers of the day were Financial Tech (11%), ING Vysya Bank (7%), Sesa Goa (7%), Jaiprakash Associates (7%), HDIL (7%), Zee Entertainment (7%), SAIL (6%), Axis Bank (6%), Century Textile (6%) and Uco Bank (6%).
Top losers include Wockhardt (-5%), Bosch (-2%), Piramal Enterprises (-2%), Amara Raja (2%), Hindustan Unilever (-2%) and Marico (-2%).