The Bombay Stock Exchange benchmark Sensex on Wednesday recovered by 170 points on the back of buying support in shares of auto and telecom companies.
The Sensex, which lost 372.60 points in the previous session, bounced back by 169.81 points to 16,741.84 as heavyweight stocks led by Reliance Communication surged on sustained buying.
The broadbased National Stock Exchange index Nifty rose by 49.65 points to 5,019.85.
The upsurge in the market was supported by auto stocks, a day after most of the vehicle manufacturers posted robust sales in May.
Anil Ambani group company Reliance Communication gained 11.02 percent following reports that Emirates Telecommunication is in advanced talks to buy a stake in it.
Shares of Bharti Airtel, another leading mobile operator, rose by 5.16 percent to Rs 270.20.
Tata Motors, the owner of Jaguar Land Rover, climbed 2.60 percent, Hero Honda 3.28 percent and Maruti Suzuki 1.74 percent.
In the 30-BSE components, 23 stocks closed with gains, while six ended with losses.
However, NTPC remained unchanged at Rs 197.50.
All sectoral indices, led by tech, auto and realty, remained in the positive zone.