After a slightly lower start at 27,954.86, the 30-share BSE barometer slipped further to 27,889.02. However, with the emergence of widespread buying the index surged to day's high of 28,298.34.
It finally closed at 28,260.14, higher by 302.65 points, or 1.08 percent than its previous close.
The 50-share NSE Nifty, retested the crucial 8,600-markbut settled 95.25 points higher, or 1.12 percent, at 8,586.25.
Sun Pharnma emerged as the top Sensex gainer by surging 5.51 percent ahead of Ranbaxy's amalgamation with the company.
"Markets closed the truncated week with a near 3 percent gain, led by banking stocks, which outperformed the rest," said Dipen Shah, Head of Private Client Group Research, Kotak Securities.
Other gainers on the Sensex include Tata Motors, SBI, ICICI Bank, Hindalco, Tata Steel, ITC and Bharti Airtel.
Sector-wise, Banking index gained the most by rising 2.37 percent, followed by Healthcare index 2.31 percent. In 30-BSE index components, 23 stocks gained and seven ended with losses.
Globally, a mixed closing at other Asian markets and a higher opening in Europe after the region's manufacturing accelerated faster than initial estimates, supported the trading sentiment in later part of the session, brokers said.
Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 356.07 crore on Tuesday and Domestic institutional investors (DIIs) bought shares worth a net Rs 283.71 crore as per provisional data.
Markets will remain closed on Thursday and Friday on account of Mahavir Jayanti and Good Friday, respectively.


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