The BSE barometer, which had lost nearly 17 per cent in a string of losses since January 7 when Satyam fraud came to light, jumped 299.13 points to close at 9,370.49.

Similarly, the wide-based National Stock Exchange index Nifty also shot up by 90.35 points at 2813.45.

Reliance Communications soared 10.38 per cent to come out as the biggest gainer among the Sensex stocks.

Reliance Industries, the most valued private sector company, surged nine per cent as the stock looked more attractive following reports that promoters have increased their stake in the company to over 49 per cent as of December quarter.

IT bellwether Infosys which on Tuesday posted over 33 per cent growth for the December quarter rose for the second day in succession. With on Wednesday's gain of 6.07 per cent, the software company has jumped over 12 per cent in two days.

Mahindra & Mahindra, which launched the multipurpose vehicle Xylo was the another prominent gainer at 5.39 per cent.

RIL and Infosys together carry nearly 23 per cent weightage on the Sensex.

Expectations of further fall in inflation, the weekly data for which will be announced tomorrow, and firm global trend weres other boosting factors for the equity markets.