Mumbai: BSE benchmark Sensex rallied 353 points on Wednesday, driven by gains in index heavyweights ICICI Bank, RIL, HDFC and Infosys amid positive Asian cues.
Easing inflation numbers too helped the recovery in domestic market sentiment, traders said.
After surging 515 points during the session, the 30-share Sensex settled 353.37 points or 0.96 percent higher at 37,311.53. It hit an intra-day high of 37,473.61 and a low of 37,000.77.
Similarly, the broader NSE Nifty reclaimed the 11,000 marks, jumping 103.55 points or 0.95 percent to 11,029.40. During the day, it hit a high of 11,078.15 and a low of 10,935.60.
Top gainers in the Sensex pack included Vedanta, Tata Steel, Yes Bank, Tech Mahindra, Hero MotoCorp, Bharti Airtel, SBI and Bajaj Finance and IndusInd Bank, which rose up to 4.83 percent.
However, Sun Pharma, ONGC, Kotak Bank, Tata Motors, Asian Paints, HCL Tech and NTPC ended up to 4.58 percent lower.
Besides positive cues from other Asian markets, investor sentiment got a boost as easing retail and wholesale inflation left room for the Reserve Bank to go for another round of rate cut in October, experts said.
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While retail inflation eased marginally to 3.15 percent in July, wholesale inflation fell to a two-and-half-year low of 1.08 percent, government data showed.
Elsewhere in Asia, Hang Seng, Kospi, Shanghai Composite Index, and Nikkei rebounded after US President Donald Trump delayed tariffs on electronic goods from China, assuaging investor concerns over the US-China trade war.
Equities in Europe, on the other hand, were trading in the red in early deals after Germany's economy shrank by 0.1 percent in the three months to June, hinting at a looming global recession.
Meanwhile, the Indian rupee appreciated 13 paise to 71.27 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, slipped 0.83 percent to USD 60.79 per barrel.
