At the bullion market, gold prices fell by Rs 130 to Rs 26,320 per 10 grams today amid a weak trend globally in precious metals and subdued domestic demand.
Investors also cheered the IMF raising its growth forecast for the Indian economy for the current fiscal to 7.2 percent. The bullish sentiment was supported by buying activity ahead of IIP numbers for January and retail inflation data for February, brokers said.
Meanwhile, industrial production grew at 2.6 percent in January and retail inflation for February inched up to 5.37 percent against 5.11 percent, data released after trading hours.
Snapping its three-day falling streak, the 30-share Sensex, staged a strong comeback to settle 271.24 points, or 0.95 percent, higher at 28,930.41 on the back of across-the-board spurt in bluechip stocks.

The gauge had lost nearly 790 points in the past three straight sessions including over 604 on Monday, its biggest single-session drop in two months, tracking global sell-off on fears of a hike in US rates soon after a stronger-than-expected jobs data.
The 50-share Nifty on the National Stock Exchange too closed above the psychological 8,700-level by surging 76.05 points, or 0.87 percent to close at 8,776. It had shed 237.80 points in the preceding three sessions.
Globally, most Asian markets closed up and European indices were trading firm.
In sync with stock markets, the rupee also showed some strength and recovered from two-month by rising 28 paise to close at 62.50 against US dollar at the Forex market.
Analysts said passage of the insurance bill could raise optimism that other stalled reforms would also move ahead.
While the government has promulgated an ordinance to hike FDI in insurance business from 26 percent to 49 percent, a bill in this regard introduced in Rajya Sabha today. The bill was passed by the Lok Sabha last week.
Shares linked to insurance saw good activity with Reliance Capital leading the charts with over 10 percent gains. Max India, Aditya Birla Nuvo and Bajaj Finserv also moved up.
Sectorwise, the BSE Power index gained the most by rising 2.27 per cent, followed by Realty 1.53 percent, Consumer Durables 1.49 percent, Metal 1.43 per cent, FMCG 1.32 percent and Auto 1.22 percent.

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