The Sensex staged a smart recovery as it rallied from the day's low of 9897 to a high of 10,093 - up 2% (196 points).
The index finally settled with a gain of 98 points at 10,079.
The Nifty gained 24 points to close at 3,006.
Dr.Reddy's surged 3.5% to Rs 1,332. While Cipla added 2.5% to Rs 542, Ranbaxy, however, ended in the red at Rs 438.
Maruti rallied 3.5% to Rs 787. Tata Motors spurted 1.2% to Rs 783.
HLL bounced from a low of Rs 227 and soared to a high of Rs 241 - up 6.1% (Rs 14), before settling with a smart gain of over 3% at Rs 239.
Grasim spurted 3% to Rs 1,665. ACC gained 2.8% at Rs 596, and Gujarat Ambuja was up 0.8% at Rs 86.20.
Wipro moved up 2.6% to Rs 512. Satyam was up nearly 2% at Rs 755. While Infosys gained 1.6% at Rs 2,829, TCS added 1.3% to Rs 1,645.
Tata Steel advanced 2.3% to Rs 395. ONGC surged 2.2% to Rs 1,144. Reliance advanced over 1% to Rs 701.
HDFC added 1.8% to Rs 1,324. ICICI Bank and NTPC closed with a gain of 1% each at Rs 593 and Rs 123, respectively. HDFC Bank declined 2.8% to Rs 722.
BHEL shed 2% to Rs 1,825, and Larsen & Toubro was down 1.8% at Rs 2,246. Reliance Energy declined 1% to Rs 599.