Buoyed by a bounce in Asian markets, the BSE Sensex on Wednesday climbed 234.75

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points, or 1.31 per cent, to close at 18205.87, the highest level since August 20.

Healthy manufacturing numbers from China, better-than-expected GDP figures from Australia coupled with domestic exports numbers for July and optimism ahead of the US manufacturing numbers helped the market gain momentum.

Nifty index gained 69.45 points, or 1.29 per cent to close at 5,471.85. US Dow Jones futures were up 100 points at 10,116 at local closing ahead of manufacturing data.

“Global cues were positive on Wednesday and the market witnessed buying interest after two days of profit booking. At present, the market is cautious. We think, going forward, the market will remain cautiously bullish. Economic figures are showing healthy prospects and so outlook for the long term remains bullish,” said Divyesh Shah, CEO of Indiabulls Securities.

According to a median survey of 61 analysts by Bloomberg, US is going to report 2 per cent growth in factory output for July against a drop of 1.20 per cent in the preceding month.

Among active counters, telecom stocks climbed after the government on Wednesday began allotting 3G spectrum. Reliance Communications was the top gainer from the Sensex pack. The scrip jumped 4.94 per cent.

Tata Communication, Bharti Airtel, MTNL, TTML and Idea Cellular climbed 4.90 per cent, 3.10 per cent, 2.54 per cent and 0.91 per cent, respectively.

“Telecom stocks will gain momentum gradually when 3G services will start. But it remains to be seen how many subscribers the operators are going to attract to 3G. As of now, these stocks will stay at present levels. Meanwhile, a drop in AFT prices is a good sign for aviation stocks,” said Abbas Merchant, senior AVP of research at Jaypee Capital Services.

Aviation stocks jumped following a drop in the prices of aviation turbine fuel (ATF). Kingfisher Airlines, SpiceJet and Jet Airways moved up 5.14 per cent, 3.35 per cent and 0.51 per cent, respectively.

Metal stocks gained on healthy Chinese manufacturing numbers. Hindustan Zinc, Hindalco, NMDC, JSW Steel and Sterlite Industries appreciated 6.62 per cent, 4.48 per cent, 4.10 per cent, 3.73 per cent and 3.57 per cent, respectively. Tata Steel and Sesa Goa added 2.94 per cent and 2.78 per cent.

Auto stocks rose on monthly sales numbers. Maruti Suzuki, Ashok Leyland and Bajaj Auto advanced 1.38 per cent, 1.36 per cent and 0.73 per cent, respectively. Tata Motors ended flat. “Metal and auto stocks may see some bounce going forward,” Shah said.

Fortis Healthcare added Rs 3.70 to Rs 156.20 on reports that it will list its unit, Super Religare Laboratories, this year.

Stocks of Reliance Industries took a breather after falling for seven consecutive sessions. The scrip added Rs 17.60 to Rs 936.45.

Alex K Mathews of Geojit BNP Paribas said, “Nifty has made a decent comeback near its previous high and technical indicators have moved above the middle band of the daily Bollinger Band. It has an upside target of 5,493 and 5,505 while it is getting good support at 5,408.”