Mumbai: The Bombay Stock Exchange benchmark Sensex on Monday snapped the two-day 3.3% losses, to close with a significant gain of over 294 points or 1.71%, driven by the more than expected GDP growth at 7.9% amid easing tension in the Dubai debt crisis.

The Sensex, which had lost 223 points on Friday on the Dubai bubble, recovered to close with a gain of 294.21 points to 16,926.22 soon after a report showed the economy grew by a significant 7.9% in the second quarter of this fiscal, up from 6.1% in the previous quarter. This is the fastest GDP growth in over 18 months.

The benchmark touched the day’s high of 17,026.91 during the day, as 26 of the Sensex counters closed higher and four ended lower.

The wide-based National Stock Exchange index Nifty also rose by 90.95 points to 5,032.70 with heavy-weight stocks recording handsome gains. The Nifty touched the day’s hgih of 5,066.35.

While firming trend in Asian markets supported the Sensex to some extent, a weak European open capped the gains.

The market rebounded as most battered sectors like metals, IT, banks and realty gained the most.

With the buying activity spilling over a wide-front, smallcap index rose by 2.08% to 7,522.98 and midcap index by 1.63% to 6,415.47.