Fuelled by a rally in metal and technology scrips, the markets made a strong rebound and ended in positive turf with the Sensex closing at 16,978 levels, up 225 points or 1.4%.
The Sensex touched a low of 16,626 levels in intra-day deals. In broader markets, the Nifty firmed up 54 points to end at 5,011.
Leading the pack of gainers in the 30-share index were technology and metal counters. TCS Limited moved up 7.1% by close of trade. Infosys Technologies, Wipro, Satyam Computer, Hindalco, Tata Steel also logged smart gains.
Strength was also visible in Bharti Airtel, DLF Limited, Maruti Suzuki, HDFC, Hindalco, Reliance Industries, Tata Motors and Jaiprakash Associates.
Among sectoral indices, the BSE metal index was the biggest gainer that surged around 4.4%. JSW Steel, Sesa Goa, Hindustan Zinc, Ispat Industries, Tata Steel, Jindal Steel & Power and Sterlite Industries were the key movers in this space.