Putting its last four days of losing stretch behind, the benchmark BSE Sensex sprinted again, rallying 104 points to close above the 27,500 level, mostly on value-buying by participants ahead of the July derivatives expiry.
A likely rate hike from the US Fed this year, many experts feel, will not cause much disruptions in emerging markets, including India, which supported the upside.
Besides, covering-up of short positions by speculators backed up recovery, equity brokers said.
Finance minister Arun Jaitley's reassurance that the government will not take any "knee-jerk" reaction that will adversely impact country's investment climate did its bit.
Amid all this, worries over subdued corporate results so far remained.
The barometer touched a high of 27,609.29 before closing at 27,563.43, up 104.20 points, or 0.38%. In the past straight four sessions, the Sensex had plunged 1,045.70 points.
The NSE Nifty also signed off higher by 38.05 points, or 0.46%, at 8,375.05. Intra-day, the gauge traded in a range of 8,381.50 and 8,338.45.
Of the 30-stock pack, 20 of them registered gains.
IT giant Infosys came out on tops on the gainers' chart, up 2.04%. Maruti, Lupin and BHEL too surged.
Tata Steel and Hindalco were back in demand, which rose up to 0.95% on the back of a global recovery in industrial metals.
Coming to sectors, capital goods, IT, auto, banking, pharma and metal contributed to the upside.
Similarly, broader markets mid-cap and small-cap indices gave a better account of themselves, rising up to 0.89%.
Meanwhile, Asian stocks closed mixed with an upward bias. The Shanghai Composite Index rebounded 3.44% after three sessions of loss. European markets were too quoting higher in their late-morning deals.