The 30-share BSE index ended 848.18 points or 1.74 per cent higher at 49,580.73, and the broader NSE Nifty soared 245.35 points or 1.67 per cent to 14,923.15.

IndusInd Bank was the top gainer in the Sensex pack, rallying over 7 per cent, followed by SBI, ICICI Bank, HDFC twins, Axis Bank, Bajaj Finserv and UltraTech Cement.

On the other hand, L&T, Bharti Airtel, Nestle India, Sun Pharma and PowerGrid were among the laggards.

According to Binod Modi, Head Strategy at Reliance Securities, domestic equities witnessed strong rebound as robust Q4 FY21 earnings and early sign of decline in second wave of daily caseload bolstered investors’ confidence.

“A consistent reduction in COVID-19 daily caseload, which fell below 3 lakh on Sunday, certainly augurs well for markets. It indicates that prediction of receding second wave of COVID-19 by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond Q1 FY22," he said.

Elsewhere in Asia, bourses in Shanghai and Hong Kong ended on a positive note, while Tokyo and Seoul were in the red.

Stock exchanges in Europe were trading on a negative note in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.06 per cent higher at USD 68.75 per barrel.