The index rebounded from a nearly 300-point fall on buying at lower levels while a positive trade data from China helped in snapping two-day losing streak. Sentiment got a further boost from European markets, which advanced for a second day buoyed by a recovery in commodity and energy producer stocks.

"The sentiment on the Street was jittery after weak IIP data. However, with firm opening of European benchmarks and strong global cues, markets bounced-back sharply to shut the day positive," said Gaurav Jain Director of Hem Securities.

Despite the Index of Industrial Production (IIP) falling at the sharpest pace in over four years in November and consumer inflation shooting up to 5.61 percent in December, bourses managed to log a relief rally.

The biggest gainer on the Sensex was RIL, which climbed 3.09 per cent to Rs 1,077.35 on hopes of posting record earnings next week. Besides, Infosys surged 3.08 percent to Rs 1,082.35 ahead of its quarterly earnings tomorrow.

Latest News  from Business News Desk