Hectic buying in market heavyweights Reliance Industries, Bharti Airtel and IT stocks also bolstered investor sentiment, traders said.
Rallying for the fourth straight session, stock market benchmarks Sensex and Nifty surged over 1 per cent on Thursday, powered by across-the-board buying amid a mixed trend in global equities after the US Federal Reserve maintained its rate cut projections for this year.
Hectic buying in market heavyweights Reliance Industries, Bharti Airtel and IT stocks also bolstered investor sentiment, traders said.
The 30-share BSE benchmark Sensex jumped 899.01 points or 1.19 per cent to settle at 76,348.06, regaining the 76,000 level. During the day, it soared 1,007.2 points or 1.33 per cent to 76,456.25.
The NSE Nifty surged 283.05 points or 1.24 per cent to reclaim the 23,000-mark to finish at 23,190.65.
From the Sensex pack, Bharti Airtel, Titan, Tata Consultancy Services, Hindustan Unilever, Infosys, Nestle, Reliance Industries, Mahindra & Mahindra, HDFC Bank and Tata Motors were the biggest gainers.
However, IndusInd Bank, Bajaj Finance and UltraTech Cement were the laggards.
Meanwhile, the Federal Reserve said the US economy still looks healthy enough to keep interest rates unchanged.
"On Wednesday, the Federal Reserve announced its decision to keep the policy rate in the 4.25-4.50 per cent range. Policymakers anticipate two rate cuts in 2025, with economic growth projected at 1.7 per cent and inflation at 2.7 per cent for the year.
"Overall, this decision has mixed implications for currency movements, capital flows and market sentiment in India. Higher US interest rates could lead to foreign capital outflows from Indian markets, whereas lower rates may attract investment," Ravi Singh, SVP – Retail Research, Religare Broking Ltd, said.
In Asian markets, Seoul settled in the positive territory while Shanghai and Hong Kong ended lower. Japan's Nikkei was closed for a holiday.
European equity markets were trading lower. US markets ended significantly higher on Wednesday.
"Consistent falls of the US dollar index (DXY) have reduced the intensity of FII selling while DII buying continues to be strong, thus triggering the recent upside," Vinod Nair, Head of Research, Geojit Financial Services, said.
Global oil benchmark Brent crude rose 0.32 per cent to USD 71.01 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,096.50 crore on Wednesday after a day's breather, according to exchange data. Domestic Institutional Investors (DII), however, bought equities worth Rs 2,140.76 crore.
"Fed continues to project an additional two rate cuts this year which may create a tailwind for global equities in the near term," Dhawal Ghanshyam Dhanani, Fund Manager at SAMCO Mutual Fund, said.
On Wednesday, the Sensex climbed 147.79 points or 0.20 per cent to settle at 75,449.05. The Nifty rose 73.30 points or 0.32 per cent to 22,907.60.