The Nifty and the Sensex closed in the green, up 0.7 per cent mirroring positive cues from Asian bourses.
The Nifty closed at 6,078 up 46 points while the Sensex closed at 20,302, up 143 points.
Banks, realty and FMCG scrips led the rally.
“The rally is a precursor to coming Thursday’s F&O expiry,” said a Head of Research from an Indian brokerage.
All sectoral indices closed in the green.
Volatility was down five per cent and the volatility index India Vix closed at 16.72.
Bank of Baroda, Kotak Bank, IDFC, HUL and DLF were the top five Nifty gainers while Asian Paints, Bharti Airtel, Ultratech cement, Powergrid and Ambuja Cement were the top five losers.