Auto, metal and banking stocks surged during the day while IT stocks fell.
Sensex closed at 49,849.84, higher by 749.85 points or 1.53 per cent from its previous close of 49,099.99.
It had opened at 49,747.71 and touched an intra-day high of 50,058.42 and a low of 49,440.46 points.
The Nifty50 on the National Stock Exchange closed at 14,761.55, higher by 232.40 points or 1.6 per cent from its previous close.
The top gainers on the Sensex were Power Grid, ONGC and Ultratech Cement, while Bharti Airtel was the only loser during the day.