Mumbai: Erasing initial losses, the BSE benchmark Sensex on Tuesday rose 149 points on buying at bargain levels as investors picked up heavyweights such as RIL and Infosys amid a firm trend in European markets.

The Bombay Stock Exchange 30-share index, which declined 108 points on Monday, touched the week's low in early trade. However, it bounced back to close 149.48 points up at 16,862.81.

Brokers said fag-end buying in fundamentally strong stocks available at cheaper levels and higher openings in Europe mainly influenced the uptrend.

They said the market seemed to be in oversold position in the recent past and major players took it as a technical correction.

The broad-based National Stock Exchange index Nifty also rose 47.10 points to 5,064.30, after touching the day's low of 4,942.90.

The two heaviest on the Sensex, with 20 percent weight - Reliance Industries and Infosys - led the rally. RIL shot up 4.05 percent to Rs 820.85 and Infosys by 1.75 percent to Rs 2,303.40.

Other major supporters to the market were BHEL, HDFC Ltd, ICICI Bank, Larsen and Toubro, Jindal Steel, Mahindra and Mahindra, Maruti Suzuki, Tata Motors and TCS.