Technically, the market had bottomed out and this induced a fresh bout of purchases, said Kapil Krishnan, head of research, Prabhudas Lilladher, BSE brokerage.
The ITC scrip led the rally, fuelled by unconfirmed reports of FII purchases at the counter. Morgan Stanley was reported to be an aggressive buyer at the counter including two major off market deal amounting to nearly 5 lakh shares.
On the Bombay Stock Exchange, the ITC scrip touched an intra day high of Rs 801.75 before closing at Rs 801, up Rs 46 over the previous close.
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Other key pivotals too loked up with Reliance firming to Rs 171.60(Rs 171.10) on the BSE, SBI to Rs 262(Rs 254.50) and Tisco to Rs 152.20(Rs 145.70).
Software stocks, which bore the brunt of the previous days selling pressure, too looked up with some of the key stocks like Pentafour Software and BFL Software getting close to the upper end of the circuit filter on frenzied buying interest.
On the Bombay Stock Exchange, the Pentafour Software scrip closed at Rs 834.25(Rs 795.25) while the BFL Software scrip closed at Rs 309.60(Rs 281).
The Unit Trust of India off shore fund was reported to have been a major buyer in some of the key infotech stocks.
Total margins collected by the 5 stock exchanges, namely, the Bombay Stock Exchange, the National Stock Exchange, the Delhi Stock Exchange, Ahmedabad Stock Exchange and Calcutta Stock Exchange during the two days of hectic volatility at the bourses(Tuesday and Wednesday) was around Rs 800 crore.
The exchanges had also reviewed the position of brokers who had made losses of Rs 10 lakh or more and were satisfied that the losses were adequately covered by the margins.