Benchmark BSE Sensex index gains 1.38 percent, while the broader NSE Nifty index is up 1.47 percent in a broad-based rally after domestic institutional investors (DIIs) turned buyers on Thursday, ending a selling streak of at least 12 days. Among blue-chip shares, Sesa Goa gains 2.9 percent, while ICICI Bank is up 2.7 percent.
DIIs bought shares worth 3.30 billion rupees on Thursday, according to the most recent available exchange and regulatory data.
A return of domestic investors - who have sold heavily this year - would potentially provide a new boost to markets given signs of waning buying appetite from foreign investors.
Hopes that state elections results on Dec. 8 would yield a clear winner are also boosting shares. Investors say a clear winner in general elections due next year would be a positive outcome.