NSE Nifty recovered from its three-day downtrend to regain the psychological 6000-mark, sustained by hectic short-covering ahead of November expiry.
Persistent buying was seen in capital goods, banking, realty, PSU, FMCG and Auto sectors.
Only IT shares ended in red due to heavy profit-taking amid strong rupee sentiment.
The historic agreement between US, five other world powers and Iran over rolling back the latter nuclear programme led the crude oil prices to drop added relief to country's import bill mainly bolstered the investor sentiment.
The 50-scrip Nifty hovered between a high of 6,123.95 and low of 6,035.95 before settling at 6,115.35, showing a sharp rally of 119.9 points, or 2.00 per cent, over the last close.
Opening positive following upbeat Asian stocks amid news of World powers and Iran reached an historic agreement over its nuclear programme, the Nifty rallied during morning trade to slot 6,000-mark level, it extended its surge during morning trade, though some volatility trimmed its gains, but it regained the momentum to hit fresh intra-day highs during afternoon to close sharply higher.
Key gainers were BHEL, ICICI Bank, BPCL, Kotak Bank, SBIN, L&T, UltraCemCo, JP Associates, Bank of Baroda and DLF.
The turnover in cash segment jumped to Rs 9,800.56 crore from Rs 9,035.63 crore previously. A total of 4,835.25 lakh shares changed hands in 52,83,183 trades, while market capitalisation stood at Rs 65,78,037 crore.