Riding on firm global cues, the domestic markets ended higher on Wednesday, as the key equity indices -- S&P BSE Sensex and Nifty50 -- jumped over 1.60 per cent each, driven by banking and finance counters.
However, the markets briefly traded in the red in the afternoon session, as speculation grew about the resignation of RBI Governor Urjit Patel amid brewing tension between the banking regulator and the government.
Healthy buying was witnessed in finance and banking stocks. Export-dominated IT and healthcare stocks also gained on the back of a weakening domestic currency. The rupee slipped to around 73.91 to a dollar from its previous close of 73.68, whereas the benchmark Brent crude traded at $76.39 a barrel.
The Sensex settled 550.92 points higher, or 1.63 per cent, at 34,442.05. It had opened at 33,963.09 from its previous close of 33,891.13.
The Sensex moved 875 points, touching an intra-day high of 34,463.38 and a low of 33,587.24.
The NSE's Nifty ended the day at 10,386.60, up 188.20 points or 1.85 per cent.
(With inputs from agencies.)