Apart from the export-oriented IT and pharma stocks all other sectors gained on both NSE and BSE.
Rupee was trading at Rs 70.16 against the US dollar from its previous close of 70.44 after the benchmark Brent Crude slipped to $56.68 a barrel.
"Healthy foreign fund inflow and lower crude prices which is at a 52-week low have helped the currency. The Indian rupee has been the best emerging market currency in the past week," said Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities.
"Indian bonds, equity and the currency has outperformed other major markets by a big margin," Banerjee said.
Investors are, however, still cautious about the ongoing Federal Open Market Committee (FOMC) meeting later in the day. The committee is widely expected to raise interest rates which has kept the sentiments tepid, analysts said.
(With inputs from agencies.)