The 30-share BSE Sensex climbed 181.45 points or 0.66 percent to 27808.14, supported by banking & financials, oil and metals stocks.
The 50-share NSE Nifty closed above the 8500 level for the first time since August 14, 2015.
The index jumped 53.15 points or 0.63 percent to 8521.05.
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