The benchmark Sensex recovered to quote over 162 points higher in early trade on Thursday in the Bombay Stock Exchange on the back of buying by funds and retail investors in blue-chip stocks, led by Reliance Industries.
The Sensex, which had lost more than 117 points on Wednesday, recovered by 162.25 points, or 1.24 per cent at 12,741.02 in the first five minutes of trading.
Similarly, the wide-based National Stock Exchange's Nifty was up by 49.10 points, or 1.32 per cent at 3,675.95.05.
Stock brokers said reports that the Reliance Industries Ltd (RIL) board will meet on March 10 to discuss merger with the Baroda-based Indian Petrochemicals Ltd (IPCL) helped trading sentiments to improve.
They said short-covering in heavy-weighted stocks by speculators who had created short positions too attributed in recovery in select counters.
Heavy-weight Reliance Industries stocks were up by Rs 18, or 1.1 per cent higher at Rs 1306.50, while IPCL shot up by Rs 12.55 or 5.6 per cent at Rs 243.
Other contributers to the rise in the Sensex were Reliance Energy, Reliance Capital, Infosys Technologies, TCS, Satyam Computers, State Bank of India, Ranbaxy Lab and ONGC.