Equity benchmark Sensex climbed over 225 points to reclaim the 72,000-mark on February 15, while the Nifty settled close to the 22,000 level, supported by hectic buying in market heavyweights M&M, HDFC Bank and SBI amid a largely firm trend in global equities.
Besides, a heavy rush on auto, energy and utility counters also helped the indices, traders said.
Rising for the third straight session, the 30-share BSE Sensex climbed 227.55 points or 0.32% to close at 72,050.38. The index opened strong and touched a high of 72,164.97 and a low of 71,644.44 during intra-day trades.
Shares of HDFC Bank surged 2.15% to close at ₹1,413.75 apiece against its previous close.
The broader NSE Nifty also gained 70.70 points or 0.32% to end at 21,910.75.
"The benchmark indexes inched higher, mirroring the positive sentiment prevailing in the global market. The disinflation trend in the Euro zone, coupled with better earnings, lifted investor sentiment.
"Despite the broad-based recovery, market participants are more inclined towards quality large-cap stocks owing to the prevailing valuation gap, which led them to exercise caution on small and mid-caps," said Vinod Nair, Head of Research, Geojit Financial Services.
M&M was the biggest gainer in the Sensex chart, rising 6.51%, followed by NTPC, PowerGrid, SBI, HDFC Bank, Asian Paints and Wipro.
In contrast, Axis Bank, ITC, HUL, Nestle India and Sun Pharma were among the laggards.
In Asia, Japan's Nikkei and Hong Kong's Hang Seng settled with gains, while South Korea's Kospi slipped into the red.
China's financial markets are closed for the Lunar New Year holidays.
European markets were trading on a positive note in early deals.
The U.S. market settled with gains in the overnight trade on Wednesday.
Global oil benchmark Brent crude slipped 0.09% to $81.53 a barrel.
In the previous session, Sensex rose by 267.64 points or 0.37% to close at 71,822.83 points. Nifty also gained 96.80 points or 0.45% to end the day at 21,840.05 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth ₹3,929.60 crore, according to exchange data.
