The benchmark BSE Sensex rose to 233.70 points to close at 27,079.51 on Friday, while the Nifty gained 60.35 points to settle at 8,189.70.
Earlier in the day, the BSE Sensex soared by 325 points to trade above the 27,000 level following a flurry of buying by investors amid strong Asian trends.
The 30-share index, which had lost 190.04 points in the previous, rebounded by 325.38 points, or 1.21 per cent, to 27,171.19 points.
All sectoral indices led by metal, capital goods, realty and banking were in the positive zone, rising up to 1.67 per cent.
The NSE Nifty too recaptured 8,200-mark by climbing 82.60 points, or 1.01 per cent, to 8,211.95.
Brokers said all-round buying by participants, tracking a rally at the other Asian markets following overnight gains at the Wall Street helped the indices rebound.
Global markets were firm after Federal Reserve meeting minutes raised expectations the US central bank will not hike rates any time soon.
In other markets in Asia, Hong Kong’s Hang Seng rallied 1.76 per cent while Japan’s Nikkei uptick 0.78 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.82 per cent higher in yesterday’s trade.