The Sensex, which commenced the day with heavy losses, rebounded by 82.60 points at 9,149.30, on fag-end buying in leading stocks like Reliance Industries and ICICI Bank, spurred by firming trends in overseas markets amid speculation that the interest rate cuts would spur economic growth.

The key index moved between 9,302.75 and 9,040.56 points during the day.

The 50-share National Stock Exchange index Nifty also rose by 17.25 points at 2,783.90, after touching the day's high of 2,831.70 and a low of 2,752.90 points.

While trading in refinery stocks picked up as crude oil improved in overnight buying, financial company stocks rose after Macquarie Group, an Australia-based global financial advisor, forecast that interest rate cuts by the RBI would trigger economic recovery.

The oil and gas index gained the most by rising 1.44 per cent to 6,145.59 after the segment major and Sensex-heaviest Reliance Industries rose by Rs 25 at Rs 1,302.55 following reports of the company starting natural gas production at the KG-D6 fields in the first week of March.