It soared nearly 524 points to touch an intra-day high of 49,256.52 points
Healthy buying was witnessed in banking and finance stocks.
Around 10.20 a.m., Sensex was trading at 49,232.14, higher by 499.59 points or 1.03 per cent from its previous close of 48,732.55.
It opened at 48,990.70 and has so far touched an intra-day low of 48,923.13 points.
The Nifty50 on the National Stock Exchange was trading at 14,802.50, higher by 124.70 points or 0.85 per cent from its previous close.
The top gainers on the Sensex were IndusInd Bank, Bajaj Finserv and State Bank of India, while Tata Steel, Larsen & Toubro and Titan Company were the major losers.