The 30-share index Sensex rallied further into the green zone after opening bell, as Asian markets staged a rally.

The Sensex, which opened the day at 16,069.78, surged 238.86 points to trade at 16,259.34 as against its last closure at 16,022.48 on Tuesday.

Meanwhile, the broader 50-share S&P CNX Nifty stood at 4,877.25 after making a gain of 1.47% against its previous closure.

Broader market indices were also trading in the positive zone.

The BSE midcap index surged 1.34% and the BSE smallcap index was down by 1.53%.

The Sensex on Tuesday declined to a nearly three and a half month low at 16,022.48 after posting a big loss of 447.07 points on sustained selling activity by FIIs, on weak worldwide signals.

The Nifty ended at a nearly three month low at 4806.75 after shedding 137.20 points.

While commenting on the stock market outlook, Ashok Jainani, vice president, head research, Khandwala Securities, stated, "The stocks and indices are likely to inch up as investors try grabbing the chips and prices find bottom on oversold charts. We maintain our stance of raising the long bets as India`s macros would soon come to the centre-stage and replace the PIIGSy sentiment which has brought world markets down to more than six month lows. Nifty reached yesterday near our support target and we reiterate to accumulate around 4,750 which is likely to be a durable support for the next quarter. Only risk to our bullish stance is failure of monsoon. Asian markets are in green after the Dow scaled up to erase all of Tuesday's losses to close flat."