Indian markets rebounded sharply after a soft start, with Sensex closing 513 points higher at 85,186 and Nifty up 143 points at 26,053. IT stocks surged nearly 3%, while PSU banks also gained. Midcaps rose slightly, smallcaps slipped, and realty and oil & gas sectors lagged. HCL Tech, Infosys, and TCS led the gains.