The market, which were sliding two previous sessions amid escalating violence in Iraq and crude oil concerns were mostly trading in narrow-range, summed-up late after RBI Governor Raghuram Rajan's comment that the country is ready to deal with the shocks on the back of narrowing current account deficit (CAD) and strong forex reserves.
Hectic buying by funds in key counters Banking, Energy mainly led the upsurge followed by Metal, IT and Auto counters. The second line shares of Mid-cap and Small-cap also contributed the rally.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 194.10 crore yesterday, as per the provisional data from the stock exchanges.
The 50-share Nifty opened lower 7,525.05 and traded between a high of 7,637.60 and a low 7,509.25 before closing at 7,631.70, up 98.15 points or 1.30 per cent.
Major gainers ONGC 4.26 per cent, Asian Paint 3.84 per cent, Axis Bank 3.75 per cent, PNB 3.52 per cent and Indusind Bk 3.35 per cent.
Meanwhile, other Asian markets ended mixed ahead of key US Federal Reserve Policy meeting.
Turnover in the cash segment rose to Rs 18,838.65 crore from Rs 18,249.10 crore yesterday. A total of 10,733.78 lakh shares changed hands in 85,08,119 trades, while the market capitalisation stood at Rs 87,72,776 crore.