The NSE gauge Nifty too climbed over 123 points to trade above the psychological 12,000 level.
Starting off on a higher note, the BSE barometer further gained strength as the trade progressed and quoted at 41,302.80, a rise of 408.42 points or 1 per cent.
Likewise, the Nifty was trading at 12,116.30, gaining 123.80 points or 1.03 per cent.
On Tuesday, the Sensex had closed down 161.31 points or 0.39 per cent at 40,894.38, while the NSE barometer Nifty settled at 11,992.50, showing a fall of 53.30 points or 0.44 per cent.
According to the provisional exchange data, FPIs remained net sellers in the capital markets as they offloaded equities worth Rs 74 crore on a net basis on Tuesday.
Global crude oil benchmark Brent Futures rose 1.09 per cent to USD 58.38 per barrel.
Asian shares were cautiously higher on Wednesday as investors tried to shrug off coronavirus worries despite rise in the number of virus cases.
The death toll from the deadly coronavirus crossed 2,000 on Wednesday after 132 more people died in Hubei province, the epicentre of the outbreak.
The Chinese central bank has cut the interest rate on its medium-term lending, as policymakers try to ease financial stress caused by the coronavirus.
Forex market was closed on account of Chhatrapati Shivaji Maharaj Jayanti. MKJ MKJ