The Sensex ended the day higher by 332 points, while the Nifty gained 107 points in trade. The rupee rallied 52 paise and was trading at 67.10 at 3.30 pm. Reports suggest there was heavy RBI intervention to prop up the rupee.
Ranbaxy led gainers higher and rallied almost 8 per cent in trade, as investors hoped that a falling rupee would boost the company's earnings. Bhel, Tata Motors, Reliance Industries and Bharti Airtel joined Ranbaxy higher from the Nifty stocks.
IT Stocks were once again on fire with TCS, Infosys, Wipro and HCL Tech rallying after a brief pause witnessed on Tuesday.
Nifty stocks that lost ground in trade were heavyweight ITC, Maruti and Punjab National Bank. Real estate stocks fell led by sharp losses in DLF, Sobha and Godrej Properties after the RBI tweeked norms for home loans.
Gujarat Gas rallied as much as 2 per cent after reports that the company is in pact to buy 0.85 mcmd gas from GSPL.
IPCA Labs rallied in trade today after the company got an FDA approval for its Indore Plant. Other pharma stocks also saw substantial gains on hopes that a falling rupee would boost gains. Lupin Labs, Cipla and Dr Reddy's also ended higher.
Meanwhile, markets in Asia ended the day mixed with the Japanese Nikkei and the Shanghai Composite gaining ground, while the Singapore's Strait Times and Hong Kong's Hang Sang ended the day lower.