Benchmark indices gained in trade despite the Indian Meterological Department (IMD) forecasting rains below normal for this year.
The Sensex ended the day with gains of 214 points, while the Nifty gained 52 points in trade.
Shares in Wipro fell after the company reported a dismal set of results. PSU banking stocks which were hammered after the IMD forecast a weak set of results ended the day higher on a short covering rally.
Other stocks that closed higher were private sector banking names like Axis Bank and ICICI Bank. Hindustan Unilever was the top gainer from the Nifty after falling sharply on Tuesday.
Software stocks saw a smart bounce in trade with HCL Tech, Infosys and TCS recovering sharply from the day's lows on short covering.
Wipro, however continued to lose ground following a poor set of results.
Meanwhile, markets across Europe were trading lower following worries over Greece.