Reversing a two-day meltdown, equity indices staged a smart pullback Wednesday as investors scooped up recently-hammered FMCG, metal and capital goods stocks amid a recovery in the rupee.
Sentiment was bolstered after the government said all steps will be taken to ensure the domestic currency does not depreciate to "unreasonable levels", amid reports that PM Narendra Modi will take stock of the economic situation over the weekend.
The Sensex surged in late afternoon trade to finish higher by 304 points at 37,717. The broader NSE Nifty too jumped 82 points to end at 11,369.
The rupee rebounded from its historic low of 72.91 (intra-day) against the dollar to 71.86 in afternoon trade.
The Nifty, in a volatile session, recaptured the key 11,300-mark. It ended at 11,369, up 82 points or 0.73 per cent.
Brent crude oil prices also eased to some extent after breaching the $79 a barrel mark.
Stock exchanges will remain shut on Thursday on account of 'Ganesh Chaturthi'.