Wednesday, the Indian market reversed its early losses to finish sharply higher for the day shrugging off weak global cues. While losses in the U.S. and the Asian markets on worries of weak corporate earnings kept investor sentiment subdued in early trading, heavy buying in index heavyweights later in the day helped the market close near the day's high.

The BSE Sensex made a gap-down opening at 10,284 and fell to a low of 10,172 before bouncing back. The Sensex rallied to the day's high of 10,778 before paring some of its gains to finish at 10,742, up 207 points or 1.97% over the previous close. Likewise, the S&P CNX Nifty rose 86 points or 2.65% to 3,343.

On the other hand, second-line stocks witnessed heavy buying. On the BSE, the market breadth was extremely positive with gainers outnumbering losers by 2021 to 468. The broad-based BSE 500 index moved up 2.39%, the mid-cap index rallied 3.11% and the small-cap index jumped 4.47%. The Sensex futures also finished at a premium of 58 points to the benchmark.

Among the major gainers, Jaiprakash Associates jumped 8.71%, NTPC, Tata Motors and Hindustan Unilever soared more than 6% each, ITC rallied 5.15% and Larsen & Toubro gained 4.71%.

Wipro, TCS, Sun Pharma, Reliance Industries, Tata Steel, Ranbaxy Laboratories, ONGC, Tata Power and Maruti Suzuki were the other prominent gainers.

However, Mahindra & Mahindra, Hindalco, Reliance Communication, HDFC Bank, BHEL, Sterlite Industries, State Bank of India and Grasim ended in the red.

Realty stocks led the gainers on hopes about improved housing demand. Consumer durable and FMCG stocks rallied on expectations that healthy demand in rural India would yield better revenue growth for these companies. Auto, technology and metal stocks showed modest gains.

The BSE banking index moved down 0.22%. While Yes Bank, IDBI Bank, Allahabad Bank and Indus Ind Bank rose more than 3% each, Kotak Bank fell nearly 3%, Canara Bank declined 2.29%, Oriental Bank of Commerce and HDFC Bank drifted down around 1.6% each, Federal Bank declined 1.10% and State Bank of India moved down 0.45%.

Oil exploration stocks such as Reliance Industries, Cairn India and ONGC ended up despite crude oil price falling below $48 a barrel on fears about a sizable increase in crude stock piles ahead of the release of U.S. inventory data.

State-owned oil marketing companies also closed higher. HPCL gained 1.15%, BPCL advanced 2.71% and IOC moved up 3.78%. In the aviation sector, Kingfisher Airlines jumped 11.02%, JetAirways climbed 20% and SpiceJet rallied 7.74%.

Sugar stocks surged up on reports that sugar production would fall by about 45% to 14.2 million tones during the season ending September 2009 compared to 26.4 million tones in the previous season due to adverse weather conditions in the growing areas.

Among the major gainers in this space, Bajaj Hindustan climbed 10.37%, Balarampur Chinni rallied 7.54%, Bannariamman advanced 5.73%, Ponni Sugars soared 8.93% and Sakthi Sugars moved up nearly 5%.

NTPC jumped 6.70% on reporting a 5.6 percent increase in its provisional net profit to Rs.7, 827.4 crore in 2008-09. Hindustan Dorr Oliver was locked at the 5% upper circuit limit on bagging two orders worth Rs.66 crore from Vedanta Group.

Religare Enterprises closed up 0.18% after its venture capital arm entered into a 50:50 joint venture with private equity firm Milestone Capital for managing a Rs.600-crore healthcare and education fund.

Aurobindo Pharma added 3.61% after the company received its first approval from Swissmedic, Government of Switzerland, for launch of Finasteride APL tablets in 5 milligram in Switzerland.

Essar Oil rallied for the fifth straight session on reports that it is close to buying a 50% stake in Kenya Petroleum Refineries for about Rs.2, 250 crore. The stock jumped more than 8% to Rs.129.20.

United Breweries soared 9.65% after a block deal of 55.24 lakh shares was executed on the Bombay Stock Exchange. BHEL moved down 1% despite reports that it expects to receive Rs.50000 crore new orders in FY10.

Reliance topped the traded value with a turnover of Rs.346.19 crore followed by Reliance Capital (Rs.202.35 crore), Essar Oil (Rs.190.87 crore), Reliance Infrastructure (Rs 189.34 crore) and ICICI Bank (Rs 140.82 crore).

Reliance Natural Resources topped the traded volume with trades of around 2.58 crore followed by Unitech (2.36 crore), United Breweries (2.12 crore), Cals Refineries (1.98 crore) and Ispat Industries (1.67 crore).

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