Benchmark indices ended the day higher as heavyweights, led by Reliance Industries surged in trade. Another heavyweight, ITC led gainers in trade, jumping as much as 3 per cent.
The Sensex ended the day with gains of 186 points, while the Nifty gained 37 points in trade. For the week, the markets dropped, after Monday's sharp fall.
Buying was seen in trade today, after hopes that weak data, would hold back the US Fed from cutting interest rates.
The biggest gainers in trade were ITC, Maruti and Axis Bank. Among the stocks that lost ground were Vedanta, Bharat Heavy, Tata Steel and Tata Motors.
Banking stocks exhibited a very weak trend today, with most of the PSU Banks seeing sharp declines. These stocks had rallied dramatically on Thursday, on hopes of an interest rate cut.
Shares in Wockhardt surged a huge 9 per cent, after the USFDA cleared the company's Chikalthana plant that contributes substantially to the total revenues of the company.
Shares in DEN Networks also rallied after reports of a board meeting at the company on September 20 to consider issue of preferential shares.
Meanwhile, the rupee was trading at 66.95 to the US dollar.