Mumbai, Jan 12 (Agencies): Shrugging off low industrial production numbers, stock markets on Wednesday made a smart comeback after falling for 6 straight sessions, as the BSE benchmark Sensex jumped 338 points on value buying, amid strong cues from global peers.

However, the Bombay Stock Exchange bellwether index, Sensex, showed a highly volatile movement and swung in the range of over 526 points, before settling at 19,534.10, up 337.76 points or 1.76 per cent from the previous close.

The National Stock Exchange's wide-based Nifty also went up by 109.15 points or 1.90  per cent to settle at 5,863.25.

"Market was in the oversold territory, which attracted handsome value buying by retail investors and FIIs despite the IIP data disappointing the street. Besides, the firm overseas markets supported the sentiment back home," said Geojit BNP Paribas Financial Services Research Head Alex Mathews said.

The 30-share index, which lost over 1,350 points in the last 6 trading sessions, saw heavy selling after industrial output data.

"Despite poor IIP performance, the cumulative growth for FY'11 so far (April-November) is still around 9.5 per cent, which can improve over the remaining FY11 period. We are expecting overall IIP for FY11 to register 10-11 per cent YoY growth. That would mean the last four months IIP should record at least 10 per cent YoY growth," MAPE Securities Head of Research Kislay Kanth said.

The Street recovered across the board, as barring capital goods index, all the other 12 sectoral indices ended on a robust note, with consumer durables leading the gains. Realty index gained more than 4 per cent, while the metals and the banking indices were also among the prominent gainers.

Top private sector lender ICICI Bank extended its on Tuesday's gains and gave a much needed support the tumbling markets. The heavy-weight counter advanced by 4.47 per cent, and the rival HDFC Bank also erased its recent losses to end with a gain of 2.77 per cent.

A significant surge of 1.61 per cent in the country's most valued firm Reliance Industries also helped the bounce-back on the street.

IT bellwether Infosys Technologies too was up 1.37 per cent, in hopes of smart third quarter results, slated to be announced on Thursday.

"Infosys results will be a major event tomorrow, while December inflation is another important factor to keep an eye on for this week," IIFL Head of Research Amar Ambani said.

The broader indices also participated in the relief rally today with the BSE Mid-Cap and the Small-Cap index rising 1.6 per cent and 1.4 per cent respectively.

Among the Sensex components, 22 ended the day on a cheerful note, while rest eight scrips slipped in the red.

Major laggards were the two-wheeler maker Bajaj Auto and infrastructure giant Larsen & Toubro, dipping 1.52 per cent and 1.43 per cent, respectively.

It was a good trading day on the global front as the Asian and European indices witnessed smart session. In Asia China's Shanghai gained 0.56 per cent, while Hong Kong's Hang Seng went up by 1.54 per cent.

European markets also opened on a firm note.