Recovering from its 15-month low levels, the Bombay Stock Exchange benchmark Sensex today gained over 200 points to end the day at 16,341.70 amid positive cues in European markets.
Brokers said the market sentiment improved as investors bought fundamentally strong stocks at existing levels, encouraged by recovery trend in the European markets.
According to market players, investors felt that they perhaps over-judged the recent slump in global stocks. Driven by a meltdown in world equity markets, the benchmark had slumped 4.1 per cent last week, its lowest level since May last year.
In a similar fashion, the broad-based National Stock ended higher by 53.15 points to 4,898.80.
Meanwhile, Europe’s main stock markets rallied in the morning trade, with London and Paris going up.
After losing nearly 700 points in the previous two sessions, the 30-share index recovered sharply on the back of gains in blue-chips such as Reliance Industries and ONGC. RIL gained 3.43 per cent followed by ONGC 3.99 per cent.
Barring a fall in information technology and banking, all other eleven sectoral indices closed with gains. Infosys, the second-most heaviest on the Sensex, fell 1.41 per cent and capped the gains to some extent.