The market benchmark BSE Sensex, backed by vigorous buying in IT shares, plunged more than 300 points to reclaim the 40,000 level on Thursday.
After climbing more than 400 points during the day, the 30-share index finished 303.72 points, or 0.76 percent, higher than 40,182.67. It hit an intra-day of 40,468.88 and a low of 40,062.23.
The broader NSE Nifty rose 95.75 points or 0.82 percent to end at 11,834.60 points.
The top gainers in the Sensex pack include UltraTech Cement, TCS, HCL Tech, Infosys, HDFC Bank and Sun Pharma.
Tata Consultancy Services (TCS) jumped over 3 percent as it announced a Rs 16,000-crore buyback plan at Rs 3,000 per equity share.
On the other hand, ONGC, ITC, PowerGrid, Reliance, Asian Paints and L&T finished in red.
Elsewhere in Asia, nutrition remained high in Shanghai, Seoul and Tokyo, while Hong Kong closed with losses.
Stock exchanges in Europe were more traded in early deals.
Brent crude, the international oil benchmark, was trading 1.62 percent up at USD 42.67 a barrel.
The rupee strengthened 9 paise to close at 73.24 against the US dollar in the foreign exchange market.
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