The 30-share Sensex, which had lost 1,405 points in the past six trading sessions, bounced back to record a notable gain of 507.19 points to end at 15,912.13 on tremendous buying support, particularly in blue-chips RIL and Infosys attracted.

In a similar fashion, the wide-based National Stock Exchange index Nifty surged by 146.90 points, or 3.22 per cent to 4,710.80.

Brokers said trading sentiment was helped by comments from Mukherjee, who on Tuesday after market hours said fiscal stimulus will continue. World markets edging higher also helped buying, they added.

"Today's recovery seems to be a technical bounce back after the recent fall following inflow of disappointing quarterly corporate earnings,' said BSE broker Rajiv Malik.

He said the finance minister's comments on fiscal stimulus package also buoyed the sentiment.