Taking a signal from worldwide markets, which gained owing to declining crude oil rates, the 30-share index BSE Sensex made recovery of 434 points (2.3%) on Wednesday to mark its closure at 19,696.9.

The increase was accompanied by a loss during the five successive trading sessions.

On the other hand, the Nifty of the National Stock Exchange also gained 125.8 points (2.2%) to end the day at 5,911.5.

Asian as well as European bourses ended in the black as indices in key markets surged by around 1% during the day.

Mr. Pankaj Pandey, head of research at ICICI Securities stated, "Cooling down of crude oil prices had an impact and the Indian markets also witnessed short covering of the positions that were built when crude rose."

While the short-and-medium term fears relating to advanced levels of crude oil rates, inflationary figures and high rates of interest persist, market professionals think that the long-term prospective of the Indian bourses remain tough and that FIIs will continue to make investment in the Indian markets.

The head of equities at a leading mutual fund said, "There are various areas of concerns such as high crude oil prices, rising inflation and there is definitely a concern on margins as a result of rising input, interest costs and wages. However, global investors are excited about emerging markets and they are investing for the longer term."

Among the sectoral indices, the capital goods index and the auto index at the BSE gained 2.7% and 2.5% respectively.

The banking index grew by 2.3% during the day.