The Federal Reserve, as expected, raised the benchmark interest rate by a quarter percentage point, but gave a more dovish outlook for future hikes.
The rupee was in a sweet spot, strengthening by another 47 paise to hit a fresh 16-month high of 65.22 against the dollar.
The 30-share index surged 206.40 points, or 0.70 per cent, to 29,604.51. The gauge had shed 44.52 points in the previous session.
All the indices, led by metal, infrastructure and capital goods, advanced with gains up to 1.24 per cent.
The buoyancy is in line with a firming trend at other Asian bourses, tracking overnight gains in the US, after the Federal Reserve went for a rate increase.
Besides, a flood of foreign capital in domestic bourses gave a push to the equities, traders added.
Japan's Nikkei, however, shed 0.13 per cent.
The US Dow Jones Industrial Average ended 0.54 per cent higher yesterday.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)