The Sensex opened with a minor positive gap of nine points at 7,953, but dropped to a low of 7,891 in early deals.
Renewed buying at lower levels saw the index move into positive zone in early noon deals.
The index zoomed to a high of 8,087 towards the closing bell - an intra-day swing of 196 points. The Sensex finally closed with a gain of 129 points (1.6%) at 8,073.
The Nifty gained 32 points to close at 2419.
L&T zoomed nearly 7% (Rs 95) to Rs 1,509. BHEL gained Rs 16 to Rs 1,138. Tata Power was up 3% (Rs 12) at Rs 412.
Cement scrips logged gains today. Grasim advanced over 4% (Rs 53) to Rs 1,179. While Gujarat Ambuja moved up 5% to Rs 73, ACC gained 3% (Rs 13) to Rs 465.
Auto stocks finished on a mixed note. Bajaj gained 2% (Rs 35) to Rs 1,755, and Hero Honda was up Rs 8 at Rs 714. While Maruti declined Rs 9 to Rs 542, Tata Motors was down Rs 4 at Rs 481.
Tech scrips closed at higher levels. Infosys zoomed over 2% (Rs 53) to Rs 2,589. TCS gained Rs 17 to Rs 1,425. Satyam was up Rs 15 at Rs 628.
HDFC moved up 3% (Rs 33) to Rs 1,002. Hindalco gained 3% to Rs 121. Dr. Reddy's was up 2.9% (Rs 24) at Rs 847. ICICI Bank, Bharti and Ranbaxy also finished with gains.
Reliance gained 1.4% (Rs 11) to Rs 777. ITC added 2.8% (Rs 3) to Rs 125. HLL was up Rs 2 at Rs 165. SBI, however, declined Rs 8 to Rs 831. ONGC was down Rs 2 at Rs 932.