Top flight stocks jumped in afternoon trading led by Tesco after it resolved its dispute with household goods giant Unilever.
The country's largest supermarket saw household favourites such as Marmite run low on its shelves earlier this week because it refused to push through a 10% levy insisted on by Unilever. The dispute has been resolved, but details of the new deal have not been disclosed.
The FTSE 100 Index lifted 62.4 points to 7040, as the Tesco resolution also boosted other supermarket stocks.
Tesco was the highest riser among blue-chip stocks jumping 8.7p to 203.8p, more than wiping out a 3% fall in the previous session. Morrisons rose 1.7p to 220.7p and Sainsbury's was up 2p to 233.2p.
Spreadex financial analyst Connor Campbell said: "Tesco's rebound, and the gains it has inspired in the rest of the supermarket sector, has helped lead the FTSE more than 50 points higher."
In afternoon trading, the biggest risers in the FTSE 100 Index were Tesco (+8.7p to 203.8p), Mediclinic International (+38p to 923.5p), Barclays (+6p to 172.5p), Capita (+18.5p to 596.5p) and International Airlines Group (+11.3p to 382.8p).
The biggest fallers in the FTSE 100 Index were Antofagasta (-18p to 521.5p), Fresnillo (-32p to 1634p), Randgold Resources (-130p to 6900p), Ashtead Group (-23p to 1324p) and Unilever (-52p to 3544.5p).
In afternoon trading the biggest risers in the FTSE 250 Index were Man Group (+16.4p to125.1p), Tullow Oil (+18.6p to284p), Serco Group (+6p to136.4p), William Hill (+13.4p to312.4p) and Vedanta Resources (+23.5p to638p).
The biggest fallers in the FTSE 250 Index were Domino's Pizza Group (-10.1p to 331p), Centamin (-4.2p to 145.1p), Acacia Mining (-13.1p to 453.2p), Aggreko (-20p to 945p) and Assura (-1.2p to 58.6p).