Benchmark indices staged a solid rally in trade, led by good broad based gains, with everything from auto to banks contributing to higher levels.
The Sensex was last seen trading 508 points higher (around 3 pm), at 34,818 points, a welcome jump after some huge losses over the past few weeks.
Some positive news, including gains from the rupee and reports that the SBI would increase its planned portfolio of purchases from NBFCs helped sentiments.
"The bank had initially planned for a growth of Rs 15,000 crore through portfolio purchase during the current year which is now being enhanced," State Bank of India said in a filing.
The rupee too was trading at 64.23, as against a closing of 64.39 seen on Tuesday, after reports that NRIs maybe tapped. What was most interesting about the rally was that 27 of the 30 Sensex stocks participated in the rally, with only Infosys, Hindustan Unilever and Wipro being among the losers.
The stars in trade were the banking stocks, with Axis Bank and ICICI Bank leading stocks from the banking sector.
Shares in NBFCs were also big gainers in trade with DHFL, L&T Finance Holdings etc., rallying, after the SBI statement.
Autos lent fantastic support to the markets with Maruti Suzuki leading the Sensex gainers. Today's rally was a welcome relief for the markets, with the Sensex still lower by a staggering 4,200 points, since hitting a peak of 38,986 points.
Meanwhile, Asian markets were witnessing a very quiet day of trade, with the Hong Kong's Hang Sang, the Shanghai Composite and the Japanese Nikkei all trading with gains.