The 30-share gauge resumed higher but quickly fell to a low of 18,997.82. Buying gathered pace soon after finance minister P Chidambaram tabled the survey.
The index finally settled at 19,152.41, a rise of 0.72% or 137.27 points the best gain since January 25. On Tuesday, the sensex had tumbled to a three-month low as it lost 316.55 points, hit by global woes and hike in freight rates.
The Nifty also bounced back on Wednesday by 35.55 points, or 0.62%, to end at 5,796.90.
Shares from capital goods, realty, refinery, metal, FMCG, power and PSU sectors attracted buying while IT scrips suffered losses on profit-booking. Market breadth turned positive as 1,440 shares finished up, while 1,359 ended down.
The survey projected an optimistic growth rate of 6.1-6.7% for the 2013-14, claiming that the downturn is more or less over and economy is looking up. It made a strong call for cutting subsidies and widening of tax base.
Economic Survey for 2012-13 presented some positive highlights, indicating economic recovery, which boosted the market sentiment, along with positive global cues, said Rakesh Goyal, senior vice-president, Bonanza Portfolio.
Smart rise in heavyweights like ONGC, Bharti Airtel, Reliance Industries, M&M and HDFC supported the recovery, brokers said.
All eyes are now set on the Union Budget 2013-14 to be presented in Parliament on Thursday. The upsurge was further supported by a firming trend in the Asian region after the US Fed affirmation of its commitment to monetary stimulus, they added.