The 30-share BSE barometer settled 1,028.17 points or 3.62 per cent higher at 29,468.49.
Similarly, the NSE Nifty rose 316.65 points, or 3.82 per cent, to close at 8,597.75.
ITC was the top gainer in the Sensex pack, rallying over 7 per cent, followed by Reliance Industries, ONGC, Tata Steel, Tech Mahindra, Sun Pharma and SBI.
On the other hand, IndusInd Bank plunged nearly 15 per cent. Maruti, Bajaj Finance and Titan were the other laggards.
According to traders, domestic investors turned positive amid rebound in global peers as most Asian benchmarks ended higher on recovery in China's manufacturing during March as authorities relaxed anti-disease controls and allowed factories to reopen.
Bourses in Shanghai, Hong Kong and Seoul ended up to 2 per cent higher, while Tokyo closed in the red.
Stocks in Europe were also trading on a positive note in early deals.
International oil benchmark Brent crude rose 3.60 per cent to USD 27.37 per barrel in futures trade.
On the currency front, the rupee appreciated marginally to 75.54 against the US dollar in intra-day trade.
The number of Covid-19 cases in India surged past 1,200, according to the health ministry. While there are more than 1,100 active cases, nearly 100 people have recovered.
Deaths around the world linked to the pandemic have crossed 37,000. ANS ABMABM