Benchmark equity indices climbed nearly 1 per cent on Wednesday on buying in HDFC Bank and Reliance Industries.
Investors are eyeing the two important events lined up ahead -- the interim budget and the US Fed interest rate decision -- to derive further cues from.
Recovering all the early lost ground, the 30-share BSE Sensex jumped 612.21 points or 0.86 per cent to settle at 71,752.11.
During the day, it zoomed 711.49 points or 1 per cent to 71,851.39.
The Nifty climbed 203.60 points or 0.95 per cent to 21,725.70.
Among the Sensex firms, Sun Pharma, Tata Motors, State Bank of India, Mahindra & Mahindra, Maruti, Bajaj Finserv, Power Grid and UltraTech Cement were the major gainers.
Larsen & Toubro declined over 4 per cent after its December quarter earnings.
Titan also ended lower from the 30-share pack.
In Asian markets, Tokyo, Shanghai and Hong Kong ended lower while Seoul settled in the green.
"A positive build-up was reflected in Indian markets prior to the interim budget, although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues.
"The overall trend in the market is akin to a see-saw, and the buy-on-dips strategy is effective as of now.
"Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down," said Vinod Nair, head of Research, Geojit Financial Services.
Global oil benchmark Brent crude declined 0.91 per cent to $82.12 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,970.52 crore on Tuesday, according to exchange data.
