Sensex staged a smart recovery on Wednesday and bounced back by about 260 points to close at a nearly three-week high of 25,850.30 driven by positive overseas leads on upbeat US data on growth and consumer spending.
The broader NSE Nifty again cracked above the 7,800-mark as investors firmed up their bets.
The current account deficit (CAD), at $8.2 billion, narrowed to 1.6 per cent of GDP in the September quarter, which emboldened investors further.
Shares of metal, oil and gas, healthcare, power and realty spearheaded the rally on a fresh spell of buying.
The 30-share Sensex settled higher by 259.65 points, or 1.01 per cent, at 25,850.30 -- its highest closing since December 3.
The index had shed 145.25 points, or 0.56 per cent, in yesterday’s trade.
The 50-share NSE Nifty reclaimed the 7,800-level to hit a high of 7,871.45 before closing the day at 7,865.95, up 79.85 points, or 1.03 per cent.
Sentiment was buoyed after data showed that foreign funds after remaining sellers this month so far were seen adding to their holdings, brokers said.