After Tuesday's fall, the benchmark BSE Sensex staged a strong comeback and rose 107 points in early trading on Wednesday following software major HCL Technologies' strong quarterly earnings.
The BSE-30 share index, which lost over 88 points in the previous session, recovered by 107.46 points at 13,714.50 in the first five minutes of trading.
Similarly, on National Stock Exchange, the wide-based Nifty index was up by 34.70 points at 4,019.65.
However, heavy-weight Tata Steel stocks faced selling pressure and fell by Rs 30.20 to Rs 498.45 after the company's board announced debt and equity issues to finance its 12.9 billion dollar Corus acquisition.
The better-than-expected quarterly earnings by HCL Technologies, recording 72 per cent year-on-year growth in net profit at Rs 331.80 crore for the quarter ended March 31, 2007, influenced trading sentiments on the bourses.
HCL Technologies stocks shot up by nearly 7 per cent at Rs 322 on increased buying by funds and general investors.
Other IT stocks like Satyam Computer, Tata Consultancy, besides ACC, State Bank of India, BHEL and Larsen and Toubro were also in the positive zone.