Moreover, a firming trend in global markets, after Greek PM Alexis Tsipras was reportedly prepared to accept creditors' demands for a bailout buoyed sentiments, equity brokers said.

"It seems that the confidence in Indian markets has improved and its out performance continues to be strong. Today with the news that Greece will accept the bailout, India rallied ahead...," said Vinod Nair, Head of Fundamental Research, Geojit BNP Paribas Financial.

Shares of capital goods, banking, power, realty, auto, IT and teck sectors firmed up on good buying enquiries. The 30-share index, which had gained 135 points in the previous session, recaptured the 28,000-mark by jumping 240.04 points or 0.86 percent to close at 28,020.87. Intra-day, it hit the session's high of 28,099.25 and a low of 27,799.91.

Sensex had last ended at 28,442.10 on April 17. The 50-share NSE Nifty also regained the 8,400-mark by climbing 84.55 points or 1.01 percent to 8,453.05. The index had ended at nearly 2-1/2 months high at 8,453.05, disclosing a gain of 84.35 points or 1.01 percent. Sentiment got a lift after output of eight infrastructure sectors expanded 4.4 percent in May, the highest growth rate in the past six months.

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