The pharma company's stock ended at Rs 425.15, up 2.98 per cent on the BSE. In the intra-day trade, it gained 7.35 per cent to Rs 443.20.
At the NSE, it settled 2.69 per cent higher at Rs 424.05.
The stock was the top gainer among the blue-chips on both Sensex and Nifty.
Shares of Cipla rose sharply in intra-day trade amid reports that promoters of the company may sell stake to a global pharmaceutical company.
However, in a clarification to the BSE, the company said: "This news item is purely baseless and speculative in nature. We have consistently denied such rumours in the past and continue to do so."
In the broader market, the BSE index Sensex fell 274.94 points or 1.08 per cent to settle at 25,246.25.