A smart rise towards the fag-end in TCS, HDFC, L&T, Sun Pharma, Hindalco, Sesa Sterlite, SBI, Infosys, HDFC Bank, Tata Steel and RIL mainly helped the market to halt two sessions of losses.
President Pranab Mukherjee signing two ordinances, paving way for additional foreign investment in insurance and to move ahead with the re-allocation of cancelled coal mines, also boosted the sentiment.
The 30-share BSE index resumed higher following beginning bof January series in the derivatives segment. It gradually started to slip and logged due to heavy foreign capital outflows. Later, it wiped off losses completely and settled the day at 27,241.78, a rise of 33.17 points or 0.12 percent.
In previous two sessions, Sensex had shed 493.18 points.
The 50-share NSE Nifty after falling to the day's low of 8,147.95 staged a strong comeback to regain the 8,200-mark to close at 8,200.70, up  26.60 points  0.33 percent from its previous close.
Brokers said absence of cues from the global markets which remained closed on account of Christmas holidays and approaching year end forced major players to refrain from enlarging their positions in a big way.
Of 30 Sensex constituents, 15 ended higher, while 15 ended lower led by Maruti Suzuki, BHEL, ITC, Hind Unilever, Cipla and ICICI Bank.
Sector-wise, the BSE realty index gained the most by rising 0.93 percent, followed by IT index (0.85 percent), Metal index (0.58 percent), PSU index (0.48 percent), Capital Goods (0.27 percent), Healthcare indes (0.26 percent), Banking index (0.13 percent) and  Oil & Gas index (0.07 percent).
Buying activity also spread to small and midcap stocks. Mid index up 0.41 percent and small cap index gained 0.02 percent.
Meanwhile, Foreign portfolio investors (FPIs) sold shares worth a net Rs 2,808.27 crore on Wednesday, as per provisional data available with stock exchanges.

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