The benchmark Sensex on Tuesday rallied by 328 points to close above the 26,000 level as good corporate earnings lifted some stocks while gains in European shares and a recovery in crude prices also boosted the sentiment.
The 30-share Bombay Stock Exchange Sensex started on a weak note, but staged a spectacular rally to erase all the losses after all-round buying. It ended up 328.37 points, or 1.28 per cent, at 26,007.30 points, its highest closing since January 1. The index has lost 201.45 points over the past two days.
The broader NSE Nifty soared 107.60 points, or 1.37 per cent, to close the day at 7,962.65 after moving between 7,822.55 and 7,973.05.
The rupee also recouped by 10 paise to 66.52 against the dollar on fag-end selling of US dollars by banks and exporters in view of weakness in American currency in the overseas market and a strong rally in domestic equities.