Wiping-off early losses, the BSE benchmark Sensex rebounded by nearly 245 points to trade above the psychological 21,000 points mark in afternoon trade on the back of recovery in IT, metal, realty and bank sector stocks.
The 30-share index, which fell over 15 points in the morning trade, reclaimed the 21,000 points level by rebounding 244.57 points, or 1.17 per cent, to 21,139.51 points in the afternoon trade.
In a similar fashion, the National Stock Exchange index Nifty was trading 71.10 points, or 1.14 per cent, higher at 6,286.25 points after falling 0.90 point in early trade.
Sentiments turned better mostly on the back of increased foreign capital inflows in stocks having strong fundamentals, brokers said.
IT sector stocks were in the green on weakening rupee, raising hopes of better revenues.
Among IT stocks, Infosys surged 2.66 per cent to Rs 3,393.90, TCS Ltd by 2.45 per cent to Rs 2,143.10 and Wipro by 1.39 per cent to Rs 488.20.