Indian markets rose over 1.1 per cent at the closing session led by capital goods, banking, oil & gas and consumer durables stocks amid mixed European cues.
The 30-share BSE index Sensex was up 206.50 points (1.13 per cent) at 18,519.44 and the 50-share NSE index Nifty was up 63.30 points (1.17 per cent) at 5,471.75.
Among BSE sectoral indices, capital goods index rallied by 2.04 per cent, followed by banking 1.91 cent, oil & gas 1.59 per cent and consumer durables 1.55 per cent. Only realty index was down 1.33 per cent.
Among 30-share Sensex, BHEL, Tata Power, Jindal Steel, Tata Steel and Tata Motors were the top five gainers, while the top five losers were NTPC, Bharti Airtel, Cipla, Infosys and SBI.
European stocks were unchanged, with the FTSE 100 Index heading for a third week of declines, ahead of euro zone consumer confidence and US home sales data.
Stoxx 50 was down 8.1 points or 0.29 per cent at 2,804.22, FTSE 100 was up 11.99 points or 0.19 per cent at 6,458.86 and DAX was down 3.18 points or 0.04 per cent at 8,394.71.
Asian shares were up after economic data from Europe to US suggested that the global economy is improving.
Purchasing managers surveys showed better-than-expected growth in the euro zone, a Chinese manufacturing rebound and US manufacturing activity rising to a five-month high this month.
Also, the US Labour Department data showed new claims for jobless benefits held near a six-year low last week, adding to signs that the US jobs market is stabilising.
Nikkei surged 295.38 points or 2.21 per cent to 13,660.50, Hang Seng was up 21.40 points or 0.1 per cent at 21,916.80 and S&P/ASX 200 rose 47.65 points or 0.94 per cent to 5,123.40.