The BSE SP Sensex settled at 38,906, up 139 points, while the Nifty 50 closed 47 points higher at 11,690.

Most sectoral indices were in the positive zone except pharma, PSU banks and media.

SpiceJet closed 8.6 per cent higher at Rs 119.35 after the budget airline announced new international flights from May-end.

Tata Consultancy Services was up 4.8 per cent and closed at Rs 2,110.05 after posting its best revenue in 15 quarters.

Among other gainers were Tata Motors, Coal India, Vedanta and Hindalco.

However, Infosys shed 2.6 per cent while Bharti Airtel, Bharat Petroleum, Sun Pharma and GAIL lost marginally.

Meanwhile, Asian stock markets were at nine-month highs as investors welcomed positive news on US-China trade talks.

US Treasury Secretary Steven Mnuchin said he hoped the negotiations were approaching a final lap. Strong Chinese export and bank loan data also contributed to the rally.

(ANI)