Marketmen said indications of political tension easing also aided the investor sentiment.

The 30-share Sensex on BSE, which moved around the 16-month low level of 13,000 points level in the past two day, shot up today by 359.89 points at 13,454.00.

The index touched the day's high of 13,509.74 and a low of 13,027.79 points.

The wide-based National Stock Exchange index Nifty rose by 90.25 points, or 2.30 per cent, at 4,016.00, after touching the day's high of 4,033.50 and a low of 3896.40 points.

The BSE barometer jumped riding on the back of a surge in consumer goods and banking stocks.

The much battered realty stocks were the best performer with a gain of 7.80 per cent. Leaders DLF Ltd., Unitech, Ansal Infrastructure, Indiabulls Realty, Parasvnath and Omex firmed up on fresh buying.