The Sensex opened marginally lower at 7,930 as against the previous close of 7,935, and dropped to a low of 7,901 in early deals.
Buying at lower levels saw the index bounce, and zoom to a high of 8,081 towards the closing bell - an intra-day swing of 180 points.
The Sensex finally closed with a gain of 134 points (1.7%) at 8,069.
The Nifty has gained 48 points to 2444.
Reliance advanced 3% (Rs 22) to Rs 770. SBI gained over 2% (Rs 18) to Rs 887. ONGC was up Rs 17 at Rs 955.
ITC moved up 4% (Rs 5) to Rs 121, and HLL was up Rs 3 at Rs 171.
Wipro gained 4.5% (Rs 16) to Rs 386. Infosys was up Rs 14 at Rs 2,552. While TCS added Rs 13 to Rs 1,429, Satyam was up Rs 7 at Rs 594.
Hero Honda added 6.6% (Rs 46) to Rs 744. Maruti moved up over 4% (Rs 22) to Rs 557. Tata Motors was up 2% (Rs 11) at Rs 513. Bajaj was up Rs 17 at Rs 1,739.
Tata Power zoomed 8% (Rs 32) to Rs 432. BHEL advanced 3.6% (Rs 40) to Rs 1,163. Reliance Energy added Rs 11 to Rs 535.
Bharti moved up over 5% (Rs 17) to Rs 331. Dr. Reddy's was up Rs 14 at Rs 839. HDFC Bank, ICICI Bank and Tata Steel also finished with gains.
HDFC declined 2.8% (Rs 26) to Rs 925. L&T slipped 1.8% (Rs 24) to Rs 1,326. Grasim was down Rs 10 at Rs 1,113.