The benchmark BSE Sensex zoomed over 372 points to 25,517.78 and the broader NSE Nifty reclaimed the 7,800-mark in early trade on the back of positive macroeconomic data.
Besides, a firming trend in other Asian markets, tracking rallies in the US and Europe as oil prices pushed up to 2016 highs on reports of an Russia-Saudi Arabia agreement to freeze output, buoyed sentiment.
The 30-share barometer spurted 372.19 points or 1.48 per cent to 25,517.78 with all the sectoral indices, led by banking, auto and infrastructure, rising up to 2 per cent.
The gauge had gained 471.75 points in previous two days.
The NSE index Nifty recaptured the 7,800-level by climbing 112.35 points or 1.46 per cent to 7,821.30.
Brokers said buying activity picked up on positive economic data as industrial production expanded at 2 per cent year-on-year in February after staying negative for the last three months on better performance of mining, power and consumer goods.
Retail inflation falling to a six-month low of 4.83 per cent in March, too had a positive impact, they said.
Among other Asian markets, Japan's Nikkei rose 2.64 per cent while Hong Kong's Hang Seng was up 2.19 per cent in early trade. China's Shanghai Composite index rose 2.08 per cent.
The US Dow Jones Industrial Average had closed 0.94 per cent higher in yesterday's trade.