Benchmark equity indices Sensex and Nifty rebounded nearly 1 per cent on Wednesday after falling sharply in the previous session, propelled by softening crude oil prices and hectic buying in bank, financial and IT shares.
The 30-share BSE Sensex jumped 790.54 points, or 1.04 per cent, to settle at 76,991.22. During the day, it surged 989.69 points, or 1.29 per cent, to 77,190.37.
The 50-share NSE Nifty climbed 197.55 points, or 0.83 per cent, to end at 24,021.65.
From the Sensex pack, InterGlobe Aviation, Trent, Tech Mahindra, Bajaj Finance, ICICI Bank, Infosys, HDFC Bank and Tata Consultancy Services were among the major winners.
In contrast, NTPC, Tata Steel, Maruti and Bharat Electronics were among the laggards.
Brent crude, the global oil benchmark, dropped 1.69 per cent to USD 75.78 per barrel.
Foreign Institutional Investors (FIIs) bought equities worth Rs 17.86 crore on Tuesday, according to exchange data.
A senior US official has said that the United States and India are "very, very close" to concluding a historic bilateral trade deal that will open the 1.4 billion-strong Indian market to American goods on reciprocal and mutually beneficial terms.
"Indian equity markets rebounded sharply from the previous session's sell-off, led by strong gains in banking stocks and a recovery in the IT sector. Sentiment improved as easing geopolitical tensions in the Middle East, and a further decline in crude oil prices helped restore risk appetite and support broader market participation," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
In Asian markets, South Korea's Kospi climbed over 3 per cent after a steep decline in the previous trading session. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also settled higher, while Japan's Nikkei 225 index ended lower.
Markets in Europe were trading on a mixed note.
US markets ended sharply lower on Tuesday. The Nasdaq Composite tumbled 2.21 per cent, and the S&P 500 dropped 1.44 per cent.
On Tuesday, the Sensex tanked 893.39 points, or 1.16 per cent, to settle at 76,200.68. The Nifty dropped 278.80 points, or 1.16 per cent, to end at 23,824.10.