Benchmark Sensex rallied 310 points to reclaim the 35,000-mark in the opening trade of the special Muhurat session on Wednesday to mark the beginning of Hindu Samvat year 2075.
The Sensex was trading higher by 310 points to 35,301.91 in the first few minutes of trade. The index had registered a gain of near 41 points on Tuesday.
All the sectoral indices were in the green, led by oil and gas, auto, realty and FMCG.
The broader NSE Nifty also rose by 61 points to 10,591.
The BSE Sensex gained 2,407.56 points, or 7 per cent, in the Hindu Samvat year 2074, while the NSE Nifty rose by 319.15 points, or over 3 per cent.
Brokers said buying activity gathered momentum as investors opened their books on the first session of Samvat 2075.
Major gainers in the Sensex pack were M&M, Tata Motors, Infosys, Vedanta Ltd, Yes Bank, Bajaj Auto, ITC Ltd, Hero MotoCorp, Maruti Suzuki, Asian Paints, Kotak Bank, ONGC, HUL, HDFC Ltd, NTPC, Sun Pharma, TCS, Adani Ports, Tata Steel, Wipro, Axis Bank, HDFC Bank and Power Grid, rising by up to 1.85 per cent.
Globally, Wall Street stock futures rose Wednesday after Democrats won control of the US House of Representatives, boosting the party's ability to block President Donald Trump's political and economic agenda.
Meanwhile, DIIs bought shares worth Rs 118 crore, while FIIs sold shares worth Rs 499.7 crore Tuesday, as per provisional data.
In the Asian region, Hong Kong's Hang Seng rose 0.10 per cent, while Taiwan was up 0.85 per cent. Japan's Nikkei, however, shed 0.28 per cent.
In Europe, Paris CAC 40 surged 1.36 per cent, Frankfurt's DAX gained 1 per cent, while London's FTSE rose 1.17 per cent in their early session.