The 30-share benchmark index ended 684.48 points higher at 20,646.64 with 28 of its components closing in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 3.66 percent or 216.10 points higher at 6,115.55 on Thursday.
Investors were cheered by the move by the Fed to stick to its stimulus plan that was seen as one that would allow more favourable investment environment in India and other emerging markets.
Meanwhile in the bullion market, gold rose Rs 270 to Rs 30,280 per 10 grams while silver shot up by Rs 945 to Rs 51,815 per kg.
--IBNS (Posted on 20-09-2013)