The Sensex and Nifty recovered in trade today led by strong buying in metal stocks amid mixed global cues. While the Sensex rebounded by about 96 points to end at 34,427, Nifty closed at 10,565, up 39 points, or 0.37 per cent.
Investor sentiment was optimistic ahead of quarterly earnings of some key companies, including TCS.
Overseas, Asian stocks rose, building on gains a day earlier, even as oil prices climbed to three-and-a-half year highs.
Tata Steel (3.17%), YES Bank (2.83%) and Bharti Airtel (2.64%) were the top Sensex gainers.
Sameet Chavan, Chief Analyst, Technical and Derivatives at Angel Broking said, "Despite Nifty experiencing some profit booking yesterday, we were quite convinced that the index would once again make an attempt to inch higher and for the day, 10495 would act as a key support. This is what we witnessed today and going ahead, we continue to expect Nifty making an effort to re-enter the strong resistance zone of 10580 - 10640. On the lower side, 10546 followed by 10495 would be seen as a crucial support. Only a sustainable move below this level would apply immediate brakes on recent relief rally. Till then the index may continue gyrating within a range of 10495 - 10640.
Today surprisingly, 'Metal' counters had a glittering move as some of the names soared to a great extent. On the other hand, 'Oil Marketing Companies' continue to take a solid toll as Brent Crude climbed further and is about to knock the 75 mark."
Aluminium prices on the London Metal Exchange surged 5 percent to their highest in almost seven years on Thursday.
Shares of Vedanta Ltd, the Indian unit of diversified miner Vedanta Resources Plc, rose as much as 6.1 percent to their highest since March 19, while National Aluminium Co Ltd gained nearly 10 percent to hit its highest in over three months.
The BSE Metal index zoomed 4.46 per cent or 632 points on global commodity prices.
Nalco, Hindalco, Vedanta, SAIL, JSW Steel, Jindal Steel, Hindustan Zinc, Tata Steel and NMDC finished with gains of up to 9 per cent.
IT stocks rose as the rupee hit a fresh seven-month low against the US dollar after international crude oil prices surged.
Meanwhile, the TCS stock closed 0.99% or 31 points higher at 3190 level ahead of the firm's Q4 earnings announcement.
Mindtree which reported over 87% rise in net profit for Q4 to Rs 182.2 crore closed 3.58% higher on BSE.
Abhijeet Dey, Senior Fund Manager, Equities at BNP Paribas Mutual Fund said, "Post yesterday's selloff, markets opened today's trading session on a positive note and continued to trade with gains, through the day. However, benchmark indices mostly hovered in a narrow range to finally close with gains of over 0.20%. Commodities stocks gave a fillip to the markets as global commodities, including crude and metals witnessed a sharp rally, thereby boosting sentiment in regional equities. In global markets, aluminium hit its highest level in nearly seven years amid growing supply concerns in the aftermath of US sanctions on " a Russian Aluminium Giant", while nickel hit a three-year peak on technical factors and fears over additional Russian sanctions. Additionally, crude oil prices hit a three and half year high, to trade at $73.48/barrel."
Most Asian and European shares rose and oil prices touched fresh multi-year highs on Thursday as improving optimism about the global economy helped investors shake off worries about geopolitical risks for the moment.
European shares were mostly higher in early trading. Britain's FTSE 100 rose 0.3 percent to 7,335.40 and France's CAC 40 edged 0.1 percent higher to 5,387.97. Germany's DAX slipped 0.1 percent to 12,577.06. Wall Street was poised to open slightly lower. Dow futures were less than 0.1 percent lower at 24,731.00 and broader S&P 500 futures dipped 0.1 percent to 2,707.70.
Japan's benchmark Nikkei 225 index rose 0.2 percent to 22,2191.18 and South Korea's Kospi added 0.3 percent to 2,486.10. Hong Kong's Hang Seng jumped 1.4 percent to 30,708.44 and the Shanghai Composite in mainland China gained 0.8 percent to 3,117.38. Australia's S&P/ASX 200 advanced 0.3 percent to 5,881.00. Shares were higher in Taiwan and most of Southeast Asia.