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The S&P BSE Sensex jumped 131 points to end at 24,682 and the Nifty50 climbed 38 points to close at 7,499.
Markets recouped intra-day losses to end higher, tracking firm European cues, amid buying in late trades led by ITC and Infosys.
Meanwhile, investors are patiently awaiting the outcome of US Federal Reserve's monetary policy meet later on Wednesday.
The S&P BSE Sensex jumped 131 points to end at 24,682 and the Nifty50 climbed 38 points to close at 7,499.
However, the broader markets closed the session in red with BSE Midcap and Smallcap indices down 0.2%-0.4%.
"We stay with our mildly bullish view of the market despite downside risks from current global factors turning less favorable. Global factors that have driven the EM rally such as looser monetary policies of the central banks, a sharp (and surprising) rally in commodities and expectations of an improved macroeconomic position and governance in certain EM countries, may not sustain. Domestic economic and earnings recovery are more relevant, in our view," said Kotak Institutional Equities in a note.
EXPORT
India’s merchandise exports fell for the 15th straight month down 5.7% to $20.7 billion in February 2016 as compared to $22 billion in February 2015 on the back sluggish global conditions and fall in the commodity prices.
GLOBAL MARKET
Asian shares closed largely in red as investors eagerly waited for the Federal Reserve to provide guidance on the risk of US rate hikes this year.
The Federal Reserve's two-day monetary policy meeting ends today.
Japan’s Nikkei and Hong Kong ‘s Hnag Seng lost 0.2%-1%. On the flip side, China’s Shanghai Composite gained 0.2%.
European equities are trading firm as participants await the decision from the US Federal Reserve's monetary policy committee. FTSE 100, DAX and CAC 40 were up 0.4% each.
SECTORS IN FOCUS
Realty stocks closed on a mixed note with DLF, NBCC, Sobha, Mahindra Life, Pheonix up 0.7%-4.5%.
On the flip side, Oberoi Realty, DB Realty, Unitech, IB Real Estate, HDIL and Prestige Estates were down 0.5%-3.5%. The Lok Sabha yesterday approved the Real Estate (Regulation and Development) Bill, 2016.
The Bill requires project promoters to register their projects with the Regulatory Authorities disclosing project information, including details of promoter, schedule of implementation of the project, layout plan, land status, status of approvals, agreements along with details of real estate agents, contractors, architects, structural engineers etc.
The Bill also provides for the creation of a single window system for ensuring time bound project approvals and clearances for timely completion of projects.
The Real Estate Bill has already been passed in the Rajya Sabha.
Metal and mining stocks dropped on the back of decline in global commodity prices. Hindalco, Jindal Steel, NALCO, SAIL, NMDC, Hindustan Zinc, Tata Steel and Coal India slumped 0.2%-3.5%.
The gold and jewellery shares reeled under pressure on report that gold imports in February declined 29.49% to $1.39 billion. PC Jeweller, Gitanjali Gems, TBZ, Titan, Rajesh Exports down up to 8%.
STOCK ACTION
Asian Paints fell 2% after rating firm Nomura cut the stock to ‘Neutral’ as compared to ‘Buy’ earlier.
Healthcare major Cipla closed 1% higher after it made an additional investment of $3 million in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer's disease.
Cairn India dipped 1% after UK’s Cairn Energy Plc on Tuesday said it has been served a tax assessment notice of Rs 28,200 crore (Rs 282 billion) by the income tax department for recovering alleged dues from an internal re-organization of the company’s Indian assets in 2006.
Eicher Motors fell 4% extending its 2% decline in past two trading sessions on the BSE, after a domestic brokerage downgraded the stock on concerns that falling order book raises earnings risk.
Bajaj Auto closed 1% higher (adjusted to dividend) on the BSE as the stock turned ex-dividend today, for an interim dividend of Rs 50 per share.
