The benchmark BSE index Sensex closed higher by nearly 250 points led by drugmakers on the back of USFDA regulatory approvals and the launch of new drugs.
The 30-share BSE index Sensex ended higher by 244.36 points or 0.77 per cent at 31,955.35 and the 50-share NSE index Nifty closed up 72.45 points or 0.74 per cent at 9,899.60.
Among BSE sectoral indices, metal index was the star-performer and was up 1.95 per cent, followed by healthcare 1.78 per cent, realty 1.5 per cent and FMCG 1.49 per cent.
Top five Sensex gainers were Bharti Airtel (+3.21%), Coal India (+2.66%), ITC (+2.42%), Dr Reddy's (+2.01%) and TCS (+1.88%), while the major losers were Infosys (-0.56%), Hero MotoCorp (-0.49%), HUL (-0.46%), Adani Ports (-0.26%) and HDFC (-0.19%).
Drugmakers rise
Aurobindo Pharma Ltd , up as much as 8.2 per cent at more than an 8-month high, was the top gainer on the index after obtaining US regulatory approval for a chronic kidney disease drug. The stock ended higher by 4.3 per cent.
Cadila Healthcare Ltd gained as much as 3.1 per cent after launching an ulcerative colitis drug in the United States.
The Nifty Pharma index was up for the sixth straight session, rising as much as 1.8 per cent to its highest since May 19.
“Pharma stocks will now slowly get into action on the back of strong product approvals for stocks like Aurobindo Pharma and Biocon,” said Krish Subramanyam, co-head - Equity Advisor at Altamount Capital Management.
Biocon Ltd rose as much as 6.25 per cent to a life-time high.
Hindustan Unilever Ltd gained as much as 3.2 per cent to a record high of 1,195.05 rupees after the consumer goods company reported a 9 per cent increase in June-quarter profit.
ITC Ltd gained 2.4 per cent after a government increase in cigarette taxes hammered the stock on Tuesday.
Reliance Capital Ltd dropped as much as 2.9 per cent after Japan's Sumitomo Mitsui Trust Bank sold its remaining 2.8 per cent stake in company in a block trade.
Global markets
The dollar stayed on the defensive on Wednesday as investors wagered any further tightening in the United States would be slow at best, while optimism on China's economy underpinned Asian shares and commodities.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent at its highest since April 2015.
Shanghai's blue-chip CSI300 index rose 1 per cent and back toward an 18-month peak, while Australia's main index added 0.6 per cent. The strength of the yen limited Japan's Nikkei to a rise of 0.1 per cent.
A Netflix rally boosted the Nasdaq Composite to a record high on Tuesday, while Goldman Sachs Group Inc dragged the Dow lower as earnings take centre stage on Wall Street.
The Dow Jones Industrial Average fell 54.99 points, or 0.25 per cent, to 21,574.73, the S&P 500 gained 1.47 points, or 0.06 per cent, to 2,460.61 and the Nasdaq Composite added 29.87 points, or 0.47 per cent, to 6,344.31.