Sensex gained 87 points and the broader NSE Nifty ended above 20,100.
Meanwhile, in November, Sensex advanced 3,071 points or 4.8% to settle at 66,988.
Nifty, on the other hand, surged 1,053 points or 5.5% to end at 20,133.
The market capitalisation of all listed companies on BSE also surged by Rs 24.17 lakh crore to Rs 335.62 lakh crore in November.
Newly listed IREDA gained 10%, while shares of Tata Tech ended 10.5% higher from the listed price of Rs 1,200.
Shares of Hindustan Aeronautics also closed higher after the Defence Acquisition Council (DAC) approved the purchase of 97 Tejas fighter jets and the procurement of 156 Prachand helicopters, according to ET Now.
The market breadth was skewed in favour of the bulls.