Benchmark indices opened the day higher as Finance Minister cleared the air over Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs) clarifying that they would not have to pay MAT prior to April 1, 2015.
Read what is MAT
Among the top gainers were the banking stocks which were hammered on Tuesday. Notable gainers included the likes of Yes Bank, Kotak Bank and ICICI Bank.
Public sector banks like Canara Bank, State Bank and Syndicate Bank also saw some buying interest. Tata Motors shares fell after domestic sales fell and total output for the month of August was flat.
Coal India was marginally down after its output target for the month of August fell. Hero Motor Corp was trading lower after sales at the company for the month of August declined declined.
TVS Motors was trading flat after the company reported a marginal increase in sales. Cipla was higher after a management rejig at the company.
Meanwhile, markets across Asia saw some recovery in trade after falling sharply in the initial stage. However, the Shanghai Composite, the Hong Kong's Hang Sang and the Seoul Composite were lower. Some other markets like the Japanese Nikkei, Strait times and the Taiwan Weighted recovered.