Discounting HSBC downgrade, Sensex staged a strong comeback towards the middle of session and settled the day 373.62 points or 1.39 per cent higher at 27,251.10.

The 50-share NSE Nifty also ended above the 8,200-level by surging 108.50 points or 1.34 per cent to 8,235.45 after shuttling between 8,254.95 and 8,089.80 intra-day.

The rise in the BSE barometer was supported by gains in Axis Bank that climbed 4.95 per cent, followed by ICICI Bank at 2.88 per cent and SBI 2.52 per cent.

Sector-wise, BSE bankex gained the most by rising 2.64 per cent, followed by Capital Goods 1.81 per cent, auto 1.72 per cent and power 1.29 per cent.

Of 30-Sensex shares, 22 stocks ended in the positive zone.

The broader markets also rose as the mid-cap and small-cap indices rose 1.59 and 0.92 per cent, respectively.

In Asian region, other markets ended mixed while European stocks were higher in their early trade as the sell-off in global bonds abated and growth picked up in the euro area, supported the sentiment here.