The Sensex zoomed 1862 points or 6.9% at 28,536 and the Nifty up 497 points or 6.4% at 8,298. About 1,068 shares have advanced, 685 shares declined and 362 shares are unchanged.
Among sectoral indices, telecom stocks surged as the rally was led by Bharti Airtel, Honeywell Automation and Bharti Infratel.
The banking index also climbed with Axis Bank jumping 9% and HDFC Bank soared 12%. The other gainers included Bank of Baroda, Kotak Mahindra Bank and RBL Bank.
As per media reports, the Finance Ministry is working with officials to finalise the stimulus plan and the cabinet may discuss a broad economic support package to cushion those hurt by Covid-19.
Meanwhile, European markets gained with UK’s FTSE was up 1.56%, French CAC zoomed 2.07% and German DAX was also up 2.65%.