The Sensex opened with a positive gap of 11 points at 8,084, and dropped to a low of 8,050 in early deals.
Buying at lower levels saw the index zoom to a high of 8,216 towards the closing bell - an intra-day swing of 166 points.
The Sensex finally closed with a gain of 134 points (1.7%) at 8,207.
The Nifty gained 43 points at 2,462.
Ranbaxy zoomed nearly 6% (Rs 20) to Rs 372. Dr. Reddy's gained nearly 5% (Rs 41) to Rs 888. Cipla advanced over 4% (Rs 16) to Rs 375.
Hero Honda gained 5% (Rs 35) to Rs 749. While Maruti added Rs 20 to Rs 562, Tata Motors was up Rs 13 at Rs 493.
TCS was up over 2% (Rs 33) at Rs 1,459. Infosys moved up 1.9% (Rs 48) to Rs 2,637. While Satyam was up Rs 8 at Rs 636, Wipro added Rs 7 to Rs 377.
ONGC gained 1.5% (Rs 14) to Rs 946. Reliance advanced 1.3% (Rs 10) to Rs 787. HLL closed with a gain of Rs 3 at Rs 167.
Tata Steel moved up 4.7% (Rs 16) to Rs 364. BHEL also gained 4.7% (Rs 53) to Rs 1,191. Grasim was up over 3% (Rs 40) at Rs 1,219. Hindalco, Bharti and Reliance Energy also finished with gains.