Reuters Market Eye - The BSE Sensex gains nearly 2 percent, marking a second session of strong gains, as energy shares surge after the government's approval of a hefty increase in gas prices.
The Sensex gains 1.66 percent, while the Nifty is 1.71 percent higher, after earlier marking their highest intraday level since July 19.
Both indexes are headed towards their first weekly gain in four weeks.
Oil and Natural Gas Corp Ltd is up 6 percent and Reliance Industries Ltd gains 3.8 percent. Oil India Ltd is up 3.1 percent.
Blue chips such as ITC Ltd gains 1.5 percent on value buying after recent share price losses were seen as overdone.
(Reporting by Abhishek Vishnoi)