Snapping its two-day losing string, the 30-share barometer closed higher by 199.37 points, or 1.20 per cent, at 16,839.19 points. It had touched a high of 16,975.03 on firm Asian stocks, a rise of over 335 points, but later fell back on some weakness in European markets in morning deals.
In the last two sessions, it had fallen by over 278 points or 1.64 per cent.
The NSE 50-share Nifty also rose by 56.85 points or 1.13 per cent to finish at 5,099.85.
Private banking shares were in the limelight after ICICI Bank posted good Q1 results. ICICI Bank rose by 2.35 per cent while HDFC Bank jumped by over 3 per cent.
However, state-owned banks, including SBI and Punjab National Bank, were at the receiving end after some of the PSU banks reported rise in net non-performing assets (NPAs). SBI fell by over 3 per cent to close at Rs 1,941.20, restricting some of the gains.
The market commenced on a buoyant note on strong Asian trends after the European Central Bank (ECB) promised to keep the euro zone intact. Key benchmark indices in China, Hong Kong, Japan, South Korea and Taiwan rose by between 0.13 per cent and 2.62 per cent.
Metal sector stocks led by Tata Steel and Sterlite Industries rose as base metal prices surged in global markets.
Among the 30 Sensex scrips, 24 stocks closed with gains with metal, IT and auto indices recording handsome gains.
Reliance Industries rose by 1.42 per cent to Rs 720.40 and Infosys by 1.12 per cent to Rs 2,148.85. Tata Consultancy Services rose by 1.92 per cent to Rs 1,225.75. (More)
