Recovery in global markets, buoyed by positive US factory activity - which hit its highest level in nearly four years - boosted investor sentiment on Indian bourses.
Most cement companies spurted on speculation over hike in prices. Ambuja Cement shot up 6.06 per cent, UltraTech rose 5.75 per cent and ACC gained 5.72 per cent.
In the banking space, Axis Bank gained 3.07 per cent.
Key FMCG stocks gained on value buying. India's fourth largest software exporter HCL Tech rallied 4.43 per cent on reports of sale of its IT services arm HCL Corporation.
Bharti Airtel dropped 2.95 per cent after the telcom major lost a court case in Nigeria against Econet Wireless in which it potentially faces USD 3 billion in payout.
Meanwhile, foreign institutional investors (FIIs) bought shares worth a net Rs 206.46 crore yesterday, as per provisional data from the stock exchanges.
The market opened higher on firm Asian cues and traded in positive during morning session. It later trimmed gains but buying towards the closing hours help it to settle with healthy gains.
The 50-share Nifty traded between a high of 6,159.65 and a low of 6,108.00, before ending at 6,155.45, showing a rise of 64 points, or 1.05 per cent, over its previous close.
Other major gainers were BPCL, Grasim, Tata Steel and L&T.
Turnover in the cash segment declined to Rs 8,307.76 crore from Rs 8,962.28 crore yesterday. A total of 4,711.37 lakh shares changed hands in 51,40,028 trades. Market capitalisation stood at Rs 66,45,132 crore.