Traders took a long position in an oversold market helped by the advisory panel suggestions on the GAAR, deferring the controversial set of rules for tax avoidance until 2016.

However, Bernanke, speaking at Jackson Hole, Wyo., dashed hopes for a signal of quick action. Bernanke's comments bolstered bets that the central bank was closer to providing more stimulus for an economy that is close to stalling.

Leading the gains: Tata Motors (TAMO.NS) up 1.9 percent, Bajaj Auto (BAJA.NS) rises 2.3 percent while Infosys (INFY.NS) rises 0.7 percent.