The main index of Tehran Stock Exchange, TEDPIX, gained 40,651 points and jumped 3.08% to end trade at 1,359,011.
As the day came to a close, prices of 481 tickers rose, representing 96% of the total tickers.
The upbeat mood in the share market in part is driven by hopes for a recovery after the government announced a support package earlier in the week. The support program includes measures to inject liquidity, boost demand and improve the profitmaking of listed companies.
After 19 straight sessions of capital outflow by retail investors, fresh money came into the market on Wednesday. Market data indicate net capital inflow by retail traders was near 1.74 trillion rials ($5.8 million). This was seen as a positive signal for retail traders.
Value of retail trade surged 29% to reach 39.17 trillion rials ($130.5m), the highest in the past 20 sessions.
The rally swept across all stock categories but large caps were prominent. The TSE-30 Index climbed close to 3.8% and the TSE equal-weighted index was up about 2.7%.
The former index tracks the performance of top 30 companies in terms of market cap and the latter gives the same weight to all stocks.
About 5.76 billion shares valued at 41.32 trillion rials ($147.6m) changed hands at TSE for the day.
Seamorgh Company was the biggest winner as its shares went up 5% to 24,370 rials per share.
Omid Investment Bank incurred the biggest loss among all TSE-listed companies and went down 1.46% to 8,790 rials per share.
Omid Investment Bank contributed the most to the benchmark's fall, followed by Iran Merinos Manufacturing Company, Abadgaran Iran Tourism and Welfare Complex and AzarAb Industries Company.
Persian Gulf Petrochemical Industries Company gave the biggest boost to the benchmark index followed by Mobarakeh Steel Company, National Iranian Copper Industries Company and Social Security Investment Company.
IFB Climbs 1.4%
Iran Fara Bourse main index, IFX, gained 261.01 points or 1.41% to close Wednesday trade at 18,784. About 1.93 billion securities valued at 45.83 trillion rials ($163.7m) were traded at the junior exchange for the day.
Kerman Province Development Investment Company had the highest number of traded shares as 168.74 million of its shares worth 157.22 billion rials ($561,507) were traded.
Pasargad Insurance Company, Rail Pardaz Noafarin Company, Tadbirgaran Fars and Khuzestan Investment Company and Kimyagaran Emrooz Chemical Industries Company had the most negative impact on IFX.
Arya Sasol Polymer Company gave the biggest boost to IFX, followed by Zagros Petrochemical Company, Gohar Zamin Iron Ore Company and Saba Tamin Investment Company.