The rise was led by heavyweights ITC and Reliance Industries. Metals, FMCG and realty stocks advanced on gains in the Asian and European markets.
"Recovery in Asian and European markets post positive China data boosted the market sentiment," said Nidhi Saraswat, senior research analyst at Bonanza Portfolio Ltd.

"GDP data had been disappointing at 4.4 percent. However it didn't affect the market much as this had been already discounted," he said.
The 30-share Sensex resumed higher stayed in positive terrain through the day before ending at 18,886.13, a rise of 266.41 points or 1.43 percent. It was the fourth session of gains for the index, which is at the highest level since the August 14 close of 19,367.59.
ITC and Reliance Industries climbed 3.75 percent and 3.78 percent, respectively, and together contributed over 140 points to the index's gain.
The broader Nifty index on the National Stock Exchange rose 78.95 points, or 1.44 percent, to 5,550.75. The SX40 index on the MCX-SX, closed at 11,176.25, up 237.76 points.
The country's GDP growth slipped to 4.4 percent in the April-June quarter, the slowest pace since the 2008 financial crisis, compared with 4.8 percent in the January-March period and 5.4 percent a year earlier.
The HSBC/Market purchasing managers index (PMI) for India's manufacturing industry contracted for the first time in over four and a half years and stood at 48.5 in August.
The stock markets shrugged off the negative news and continued its rally on the back of firm trends in Asia and Europe. A gauge of China's manufacturing rose to a 16-month high, boosting investor confidence in the global recovery.
Brokers said easing crude oil prices might help in cooling inflation and trimming the current account deficit.


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