Tracking firm European cues, domestic equities in a highly volatile session snapped two-day falling run as the BSE Sensex recovered from 19-month lows to end over 172 points higher at 24,854.11 led by a strong rally in RIL and Infosys ahead of Q3 earnings.
During the session, Sensex swung almost 570 points on alternate bouts of buying and selling while some value-buying in index majors triggered the rebound.
Sentiment got a further boost from European markets, which advanced for a second day buoyed by a recovery in commodity and energy producer stocks.
Despite IIP falling at the sharpest pace in over four years in November and consumer inflation shooting up to 5.61 per cent in December, benchmarks managed a relief rally.
The 30-share Sensex after shuttling between 24,956.54 and 24,387.69 settled 172.08 points or 0.70 per cent higher at 24,854.11. The index had shed 252.30 points in previous two sessions.
The NSE Nifty ended 52.10 points or 0.69 per cent higher at 7,562.40. Intra-day, it dropped to a low of 7,425.80.
The big gainers were RIL, which climbed 3.09 per cent to end the day at Rs 1,077.35 on hopes of record earnings. It is schedule to announce its third quarter results next week.
Infosys surged 3.08 per cent to Rs 1,082.35 ahead of third quarterly earnings, to be announced tomorrow.
Tata Motors also perked up by 2.65 per cent to Rs 364.45 while M&M gained 1.97 per cent to Rs 1,205.40.
Other gainers that helped in the recovery were HUL, HDFC, Sun Pharma, Bajaj Auto, ICICI Bank, HDFC Bank and ONGC.
From the sectoral space, auto gained the most by surging 0.89 per cent followed by IT 0.69 per cent, banking 0.66 per cent, oil&gas 0.63 per cent and FMCG 0.21 per cent.
Of the 30 Sensex components, 17 advanced, while Adani Ports, Bharti Airtel, Lupin, TCS and L&T ended lower.
Meanwhile, the broader markets remained under pressure with the BSE small-cap falling 1.76 per cent and mid-cap shedding 0.46 per cent.
Globally, key indices like Hong Kong, Japan and South Korea ended higher while China's Shanghai Composite Index fell 2.42 per cent despite a better-than-expected trade report from China.