Fag-end buying saved the day for the domestic market as BSE Sensex reversed all of its early losses to settle 131 points higher at 24,682.48, tracking a strong opening in Europe as investors awaited the US Federal Reserve's policy meet outcome.
Earlier in the day, trade data showing decline in exports had dampened the sentiment.
Shares of branded jewellery firms witnessed selling after Finance Minister Arun Jaitley rejected the demand to roll back 1 per cent excise duty on non-silver jewellery.
Rajesh Exports slumped 11.70 per cent, Tribhovandas Bhimji Zaveri shed 2.71 per cent, PC Jewellers dropped 2.40 per cent and Titan slipped 1.21 per cent.
"The market smartly reversed from its day low as Investors factored the consensus of no rate hike in Fed policy action.
The glimpse of positive recovery in Europe has also favored the market sentiment," said Vinod Nair, Head Fundamental Research, Geojit BNP Paribas Financial Services.
The 30-share index remained in the negative zone for most part of the session and hit a low of 24,354.55. However, on across-the-board buying in late session, the index recovered to end at 24,682.48, up 131.31 points or 0.53 per cent. The gauge had lost 253.11 points in Tuesday's session.
The 50-issue NSE Nifty after crossing the crucial 7,500- mark advanced to a high of 7,508 and finally settled 38.15 points or 0.51 per cent higher at 7,498.75.
Meanwhile, country's exports shrunk for a 15th straight month by 5.66 per cent in February to USD 20.73 billion due to contraction in shipments of petroleum and engineering goods.