The NSE Nifty gained 148.95 points or 0.68 per cent to 22,146.65.
From the Sensex pack, HCL Technologies, Infosys, Wipro, Bharti Airtel, Larsen & Toubro, Mahindra & Mahindra,
Axis Bank, IndusInd Bank, Bajaj Finance, JSW Steel,
The broader markets also staged a smart recovery, with the BSE Smallcap gauge jumping 3.11 per cent and midcap index climbing 2.28 per cent.
Wholesale inflation rate declined marginally to 0.2 per cent in February compared to 0.27 per cent in the preceding month despite a slight uptick in the food basket.
"The market was able to recover half of last trading day's sell-off as leverage based square-off neutralised it, while institutional buying sustained the buoyancy.
"Domestic economic data Wholesale Price Inflation (WPI) eased to four-month low at 0.2% YoY in February, bringing ease to upcoming CPI trajectory, a relief for future rate cuts. The broader market is outperforming the headline indices, taking advantage of mid and smallcap as a bargaining strategy," said
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,595.06 crore on Wednesday, according to exchange data.
In Asian markets, Seoul and Tokyo settled in the green while Shanghai and Hong Kong ended lower.
European markets were trading mostly in the green. The US markets ended on a mixed note on Wednesday.
The BSE benchmark index tanked 906.07 points, or 1.23 per cent, to settle at 72,761.89 on Wednesday. The Nifty plummeted 338 points, or 1.51 per cent, to 21,997.70.
Global oil benchmark Brent crude climbed 0.76 per cent to USD 84.67 a barrel.