The BSE Sensex surged 290 points on Wednesday as banking stocks recovered following a negative day in the markets amid persistent foreign fund inflows.

After hitting an intra-day peak of 34,350.17 and low of  33,949.46, the 30-share benchmark settled 290.36 points, or 0.86%, higher at 34,247.05.

Similarly, the NSE Nifty climbed 69.50 points, or 0.69%, to close at 10,116.15.

IndusInd Bank was the top gainer in the Sensex pack with a gain of 7.93%, followed by Kotak Bank, HDFC, Axis Bank and SBI.

Hero MotoCorp, Bajaj Auto, Tata Steel, ONGC, Titan and M&M were among the laggards.

In the Nifty pack, IndusInd Bank, Hindalco, Axis Bank and Kotak Bank were the top gainers while Hero MotoCorp, Gail, Coal India, Bajaj Auto and Tata Steel were among the losers.

In the previous session, the Sensex tanked 413.89 points, or 1.20%, to settle at 33,956.69, and the broader Nifty closed 120.80 points or 1.19% to end at 10,046.65. 

The recovery on Wednesday came on the back of confidence shown by foreign institutional investors whi bought equities worth Rs 490.81 crore on Tuesday, provisional exchange data showed.