The 30-share BSE Sensex rose 172.98 points to 28474.25 and the 50-share NSE Nifty gained 41.80 points at 8819.80.
The market breadth also remained in favour of advances. About 1340 shares gained against 927 declining shares on the BSE.
Cadila Healthcare extended its rally, up 4 percent on top of 20 percent surge in previous session as its Moriaya facility did not receive any observations from USFDA post inspection.
The rally also spilled over to other pharma stocks on hopes of more positive vibes from US FDA. Sun Pharma was up 2 percent and Lupin gained 1.4 percent. Wockhardt surged 3 percent.
TCS and Infosys fell more than 1 percent on profit booking. Maruti Suzuki, SBI, Hero Motocorp, Coal India and HUL were other losers.
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