After hitting the day's low of 18,600.88 within the first 30 minutes of trading, the index staged a smart recovery. Led by TCS and L&T that gained over 2 per cent each, the Sensex closed 111.13 points, or 0.59 per cent, higher at 18,793.44.
The rally was led by stocks of capital goods, healthcare, banking and IT sectors, said dealers.
Trading sentiment turned better as investors picked up fundamentally strong stocks. TCS was the top gainer among the 30-share Sensex index as its shares ended 2.26 per cent up.
Engineering & construction major L&T hit 52-week high and finished 2.17 per cent higher after reporting a better-than -expected 42 per cent profit rise in September results today.
"Markets continued to consolidate as participants remained cautious ahead of Futures & Options expiry on Thursday. A lot of action can be expected in rate-sensitives ahead of RBI meet on October 30," said Amar Ambani, Head of Research, IIFL.
Traders said the domestic market received further support on a similar recovery in Asian stocks.
Among Sensex constituents, 20 stocks closed higher. RIL and Infosys also rose. ICICI Bank and HDFC Bank gained around 1.7 per cent each.
The 50-share National Stock Exchange index Nifty rose by 32.90 points, or 0.58 per cent to 5,717.15, after touching a low of 5,658.05.
"Nifty showed good strength from support near 5650 levels and closed in green above 5700 levels. Buying interest may be continuing above 5720 levels," said Puneet Kinra, Senior Technical Analyst, Bonanza Portfolio. (MORE)
