Buoyed by double-digit rise in industrial production growth and firm European markets, the key benchmark indices soared in the afternoon deals today. The Sensex surged 374 points to 17,017 levels and the Nifty rose 105 points to 5,050.

Industrial output growth in August surged to 10.4 per cent from a revised 7.2 per cent growth in July, helped by a base effect and a revival in the economy.

IT, oil & gas and banking stocks led the advances in the markets. SBI and Reliance Infra were the biggest gainers in the Sensex pack, up 4.3 per cent each. TCS jumped 3.7 per cent and ITC gained 3.5 per cent. RIL was also up 3.3 per cent.

European markets also advanced today. Britain's FTSE-100 rose 0.9 percent, Germany's DAX added 1.4 percent and France's CAC 40 gained 0.8 percent.