The benchmark BSE index closed up 1.87 percent at 36,256.69, in its sharpest daily gain since Oct. 29, 2018.
The broader NSE index ended 1.68 percent higher at 10,830.95.
Most sectors closed in positive territory on the day of expiry of derivatives. Reliance Industries Ltd, HDFC Bank and Infosys Ltd were among the top gainers, rising 2.6 percent, 2.2 percent and 3.26 percent, respectively.