The BSE Sensex rose 0.84 percent on Thursday as software services exporters continued their rally on hopes of better earnings this year.
The 30-share benchmark index ended 160.93 points higher at 19,413.54 with 20 of its components closings in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 0.77 percent or 44.70 points higher at 5,863.30 on Thursday.
Investors tracked European shares that surged on hopes over the euro zone economy while strong overseas sentiment boosted prospects of export-based IT shares.
Meanwhile on the New Delhi bullion market, gold recovered by Rs 40 to Rs 30,050 per 10 grams while silver also rebounded by Rs 170 to Rs 55,320 per kg.