Stocks recovered lost ground after Tuesday's sharp fall with ITC leading gainers on short covering and value buying.
The Sensex ended the day with gains of 48.14 points, while the Nifty rose 12.65 points in trade. Leading the set of gainers from the Nifty apart from ITC was Hindalco and Mahindra and Mahindra. Other stocks that gained ground were Hero Motor Corp and NTPC.
Select stocks from the software space saw selling pressure with Wipro losing one per cent, while Infosys ended the day marginally lower.
The biggest gainer from the Nifty was DLF which saw a huge spike in trade. Other stocks that gained ground were Gujarat Gas and Oberoi Realty which jumped almost 8 per cent. Metal stocks also continued to see a good rally with Hindalco, Sesa Sterlite and NMDC among the gainers.
Markets are expected to remain volatile on Thursday which is the last day of expiry.
Meanwhile, markets in Europe were trading with gains with the German DAX, French CAC and the UK's FTSE higher.