Indian equities, the Sensex and the Nifty, surged about 1.6 per cent at the end of the session on Tuesday on heavy buying by funds and retail investors on the back of global cues.
European and Asian markets were up as European finance ministers cut the borrowing costs for Greece and gave the indebted nation time to repay rescue loans after several rounds of prolonged discussions.
As part of the deal, Greece has agreed to bring down its debt to 124 per cent of the gross domestic product (GDP) by 2020, and further to 122 per cent of GDP by 2022.
The 30-share BSE index Sensex was up 305.07 points (1.65 per cent) at 18,842.08 and the 50-share NSE index Nifty was up 91.55 points (1.62 per cent) at 5,727.45.
Volume toppers were SBI, ICICI Bank, HDFC, Infosys and Bharti Airtel. Among 30-share Sensex stocks, Bharti Airtel (up 5.22 per cent), Sterlite (3.56 per cent), HDFC (2.79 per cent), HDFC Bank (2.69 per cent) and Hindalco (2.55 per cent) were the top performers.
All BSE sectoral indices were trading in the green. Among them, Realty index (up 3.2 per cent), Consumer Durables (3.18 per cent), FMCG (2.12 per cent) and Bankex (1.84 per cent) led the rally.