After a 515 points fall on Tuesday, Indian markets recovered with the Sensex trading 77 points higher, while the Nifty gained 23 points in trade.
Asian markets were trading higher, showing some signs of recovery in early morning, which helped sentiments across the Indian markets. The Japanese Nikkei, the Straits Times and the Hang Sang were all higher.
The rupee was slightly weak at 66.44 to the US dollar in early trade. Banking stocks, which had fallen sharply in trade following the RBI credit policy, saw some buying support. Heavyweights, State Bank of India and ICICI Bank saw marginal gains.
PSU Banking stocks also saw some recovery with Union Bank of India, Canara Bank and Bank of India higher.
Biocon continued its good run from Tuesday with the stock up another 1 per cent. It had rallied 6 per cent yesterday, after an upgrade by a leading brokerage firm.
Narayana Hrudulaya was up marginally after the company exited its hospital business. Midcap stocks were trading higher in line with the indices. Exide Industries, however, declined.
Bharat Forge slumped after the stock was downgraded by a leading brokerage firm. It lost almost 4 per cent in early trade.