The Sensex soared 790 points while the Nifty vaulted above the 14,850-mark on Wednesday as markets maintained their winning streak for the third session on the trot amid robust corporate results.
A strengthening rupee and short covering ahead of F&O expiry also fuelled the rally, traders said, even as the Covid-19 situation remained an overhang.
The 30-share BSE Sensex surged 789.70 points or 1.61 per cent to finish at 49,733.84.
Similarly, the broader NSE Nifty surged 211.50 points or 1.44 per cent to 14,864.55.
Bajaj Finance was the star performer in the Sensex pack, surging 8.32 per cent, a day after it posted a 42 per cent increase in consolidated net profit at Rs 1,347 crore for the March quarter.
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Bajaj Finserv gained 4.06 per cent after reporting an over four-fold jump in consolidated net profit to Rs 979 crore for the fourth quarter.
IndusInd Bank, ICICI Bank, Kotak Bank, SBI, Bajaj Auto, HDFC Bank and HDFC were among the other prominent winners, climbing as much as 5.08 per cent.
However, Nestle India, HCL Tech, L&T, TCS, Dr Reddy’s and ITC closed with losses of up to 0.96 per cent.
"Continued rebound in financials aided benchmark indices to defy concerns of rising Covid-19 cases. A visible contraction in daily caseload in Maharashtra and Mumbai offered comfort to market. Further, short covering ahead of F&O expiry also contributed to the rally.
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"Notably, strong 4Q FY21 numbers delivered by ICICI Bank, Axis Bank and Bajaj Finance along with strong commentaries from managements despite ongoing challenges supported rally in financials. Notably, rebound in equities this week added over Rs 6 lakh crore to investors' wealth in last three days," said Binod Modi, Head - Strategy at Reliance Securities.
Sectorally, BSE bankex, finance, auto, telecom and consumer durables indices rallied as much as 3 per cent, while realty, metal, healthcare and capital goods ended in the red.
In the broader markets, the BSE midcap and small-cap indices spurted up to 0.99 per cent.
India saw a record single-day rise of 3,60,960 coronavirus cases, which pushed the total tally to 1,79,97,267, while the death toll crossed two lakh following 3,293 fresh fatalities, according to Union health ministry data updated on Wednesday.
World equities remained firm ahead of the US Federal Reserve's interest rate decision, while strong earnings from tech majors propped up Wall Street.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo ended on a positive note, while Seoul was in the red.
Bourses in Europe were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 0.23 per cent higher at USD 65.82 per barrel.
The rupee rose by 30 paise to close at 74.36 against the US dollar, extending its gains for the third day.
Foreign institutional investors were net sellers in the capital market on Tuesday as they sold shares worth Rs 1,454.75 crore, according to exchange data.
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