In volatile trade, the Bombay Stock Exchange benchmark index, Sensex, surged over 318 points at noon on Tuesday after being down by over 450 points in the morning when speculators began buying to cover their pending positions.
The Sensex, which experienced a historic rise in the previous day's trading, enthused by the smooth return of the UPA to power in the general elections, surged further by 318.59 points at 14,602.80 at 1215 hrs.
Before the current surge, the benchmark shuttled between 14,757.82 and 13,834.13 points.
Similarly, the 50-share National Stock Exchange index Nifty shot up by 45.15 points at 4,368.30, after touching a high of 4,464.90 and a low of 4,167.65 points.
Brokers said there were huge pending positions created by the market participants in the previous day's rally and a further rise forced them to cover them.
They said general investors who missed the rally also joined the party.