The BSE barometer index jumped by 102.97 points to close at 27,035.85 -- a level not seen since August 21. Besides, mining and energy stocks surged after US oil approached USD 50 per barrel.
Hindalco was the top Sensex gainer with a rise of 9.64 percent. Vedanta, Tata Steel and ONGC followed with rise of up to 5.83 percent.
A big surge in rupee, which rose to a eight-week high of 64.95 against the dollar, and sustained foreign fund inflows also perked up market mood.
In volatile movements, the 30-share Sensex resumed higher at 26,966.86 but slipped into negative zone on profit-booking in blue-chip stocks at prevailing levels and hit a low of 26,877.51.
However, it staged a comeback on revival of buying and went past 27,000 level to hit a high of 27,082.28 before ending at 102.97 points or 0.38 percent higher at 27,035.85.
In last five days, the index had gained 1,316.04 points.
The broader NSE Nifty gained 24.50 points or 0.30 percent to settle at 8,177.40 after shuttling between 8,188.90 and 8,132.90.
Auto segment stocks also attracted good buying interest on expectations that the festive season would boost sales.
Bajaj Auto gained 3.14 percent, Tata Motors rose 2.31 percent and Maruti Suzuki climbed 0.32 percent.
IT stocks continued to be under pressure from weak revenue guidance.


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