After two days of losses in which the Sensex and the Nifty lost almost 7 per cent, the indices ended the day marginally higher.
Good gains in HDFC Bank, HDFC and ICICI Bank managed to help the market break the two day losing streak.
The Sensex ended the day with gains of 232 points, while the Nifty closed higher by 65 points. Shares in Oil Marketing Company stocks, including those of Indian Oil, BPCL and HPCL fell sharply, following a hike in petrol and diesel excise rates.
The central government had hiked the excise duty by Rs 10 per litre on petrol and Rs 13 per litre on diesel, late Tuesday night.
Shares in Yes Bank ended the day marginally lower ahead of results to be declared later today. Bandhan Bank was a star performer today, jumping almost 6 per cent in trade.
Other notable gainers in trade were ICICI Prudential and Mahindra and Mahindra. Kalpatru, ITC and Bharti Infratel were among the top losers.