The BSE Sensex rose 2.27 percent on Thursday as blue chips recovered on bargain buying and positive data from China.
The 30-share benchmark index ended 407.03 points higher at 18,312.94 with 28 of its components closing in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 2.00 percent or 105.90 points higher at 5,408.45 on Thursday.
Indian stocks broke a four-day losing streak after investors bought back undervalued equities and China´s factory output improved.
Meanwhile in the bullion market, gold surged by Rs 625 to Rs 31,750 per 10 grams while silver spurted by Rs 1,745 to Rs 51,900 per kg.