Positive US equities overnight also boosted sentiment.
In the last three days, the barometer index had plunged by more than 930 points on worries over economic slowdown in China and its impact on world growth.

The BSE 30-share Sensex after resuming higher at 25,614.69 improved further to day's high of 25,835.41 before falling to a low of 25,555.77. It finally closed at 25,764.78, a rise of 311.22 points or 1.22 percent.

The broad-based NSE Nifty, reclaimed the 7,800- mark by rising 106.00 points or 1.37 percent to close at 7,823. Intra-day, it touched a high of 7,845.60 and low of 7,754.05.
Among Sensex constituents, Tata Steel gained the most by surging 4.55 percent, followed by Vedanta 4.42 percent as metal prices recovered in global markets.
Asian stocks closed higher with Japan's Nikkei ending 0.48 percent higher, while Chinese and Hong Kong markets remained closed for a public holiday. European markets were too higher in late morning deals.


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