The markets rallied 3% on Wednesday led by rally in IT shares after Infosys earnings beat street expectations.
The Nifty closed at 5,099, up 125 points and Sensex ended at 16,958, up 422 points.
The Nifty index opened on an upbeat note after Infosys results were slightly better than expected.
The index received a fresh jolt in afternoon trades following IIP data at 4.1% for August against market expectation of 5%.
But, heavy buying in IT shares and recovery in European markets helped the Nifty scale a high of 5,110 and end near day's high.
Markets in Asia rebounded from lows buoyed by Chinese banks, offsetting weak results from Alumunium Giant Alcoa and concerns in Euro-zone.
The Hang Seng index closed up 0.2%, the Shanghai Composite gained 3% and the Japan's benchmark Nikkei average ended down 0.4%.
The markets rallied 3% on Wednesday led by rally in IT shares after Infosys earnings beat street expectations.