While the Sensex rose 188 points to 33,137, Nifty was up 63 points to 10,229 level.
Mumbai: Key Indian equity indices on Thursday surged to provisionally close with appreciable gains led by robust buying in auto, consumer durables and capital goods stocks.
The gauge had tanked 891.50 points in the previous four sessions. SBI, ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda, Punjab National Bank and Yes Bank fell by up to 2.27 percent.
The 30-share sensitive index had lost 205 points on Wednesday following the Reserve Bank's decision to hold interest rates.
Meanwhile, foreign portfolio investors offloaded shares worth net Rs 333.59 crore, while domestic institutional investors (DIIs) bought shares to the tune of Rs 776.18 crore on Tuesday, as per provisional data.
"Today is largely seen as a corrective recovery in the market because it had gone into an oversold territory", said Deven Choksey, promoter, KR Choksey. "There may be some recovery in the markets ahead of the earnings season and the government budget next month", he added. Participants sensed value-buying opportunities after the equities' recent lacklustre run, making stock valuations attractive, according to market participants. Bharti Airtel, Tata Motors and Maruti were the top gainers on Sensex. It has slipped 4.7 percent from a 10-year peak hit on November 23 as investors booked profits after robust gains this year. Japan's Nikkei advanced 1.45%, Hong Kong's Hang Seng went up 0.29%, while China's Shanghai Composite Index surrendered 0.67%.
Union Bank of India shed 0.6 percent on fund raising reports.
Overnight on Wall Street, the Dow rose 0.29 per cent, the S&P 500 gained 0.29 per cent and the Nasdaq 0.54 per cent.