The Sensex closed at 17,453 up 27 points and the Nifty gained 15 points to close at 5,302. (provisional)
(Updated at 14:40 hrs)
Key benchmark indices recovered from the lows of the day thus far on account of buying in banks and metal shares. At 2:40pm, the BSE Sensex was at 17,456, up 30 points from the day's low of 17,372. NSE Nifty gained 12 points at 5,300.
Meanwhile, the broader markets managed to hold on to its gains with the midcap and the smallcap indices up 0.7% each as compared to the Sensex up nearly 0.3%.
In the Asian markets, except Hang Seng and Shanghai Composite all the other markets closed in the green. Japan's Nikkei share average advanced 0.4% to close at a two-month high on Wednesday, driven by energy and resource companies following a rise in oil prices and bolstered by improved risk appetite amid expectations that central banks will act to support flagging global growth.
However, European shares edged back from two-month highs on Wednesday after three days of gains made on hopes of more monetary stimulus from central banks and progress made in dealing with the euro zone debt crisis.CAC, DAX and FTSE lost 0.2-0.5%.
Back home, among the sectoral indices, Metal index advanced in the noon trades with 2% gains as shares of metals companies rose after LMEX, a gauge of six metals traded on the London Metal Exchange, rose almost 3% on Monday, after China, the world's second-largest economy, has reported rise in its Purchasing Managers' Index and hopes of further monetary easing by major central banks. The ones leading the gains were Sterlite Industries, Jindal Steel and Sesa Goa up 3-5%.
Realty, Capital Goods and Auto index which added between 0.7-1.5 % were the other top sectoral gainers. On the other hand, Oil & Gas, FMCG and IT indices continues to trade in the negative zone, losing 0.5-0.8%
Oil & Gas index tumbled down 0.8% as crude oil prices gained in the international market. ONGC, HPCL down nearly 2% along with BPCL and IOC down 1% were the major draggers. Reliance Industries lost 0.4%.
The top gainers among the Sensex stocks were Maruti Suzuki, SBI, Bajaj Auto, Bharti Airtel, Hindalco, L&T and Cipla up 1-2%
On the losing side were Wipro, Dr Reddys Lab, Hindustan Unilever and Coal India down 1% each.
The market breadth continues to remain positive on the BSE. 1602 stocks advanced while 1158 stocks declined.