Mumbai: The benchmark BSE Sensex recovered sharply over 213 points in early trade on Wednesday powered by capital inflows by foreign funds and buying by retail investors amid a strong Asian trend.
Besides, better-than-expected Q1 earnings by Bharti Airtel buoyed sentiment.
The 30-share index, which had lost 115.13 points in the previous volatile session, gained back 213.52 points, or 0.76 percent, to 28,285.45.
All sectoral indices led by metal, IT and realty were in the positive zone, rising up to 1.73 percent.
The NSE Nifty too climbed 62.55 points, or 0.73 percent, to 8,579.45.
Brokers said emergence of buying in blue-chips on a solid earnings show by Bharti Airtel after yesterday's fall amid a firming Asian trend mainly got the momentum back.
Bharti Airtel was trading 2.88 percent higher at Rs 425.60 after the company yesterday reported about a 40 percent jump in consolidated net profit at Rs 1,554.3 crore in the first quarter of the current fiscal.
Meanwhile, in its third bi-monthly policy review of this fiscal yesterday, RBI kept the short-term lending rate, or repo rate, unchanged at 7.25 percent and the cash reserve ratio (CRR), the amount of deposits lenders park with RBI, at 4 percent.
Retaining the growth forecast at 7.6 percent for 2015-16, the central bank said the outlook is improving gradually.
In other markets in Asia, Hong Kong's Hang Seng ticked up 0.22 percent while Japan's Nikkei rose 0.81 percent in early trade on Wednesday.
The US Dow Jones Industrial Average was down 0.27 percent in yesterday's trade.
