The Nifty has fallen about 1.7 percent since it hit a record high on April 5.
However, an official forecast of an average monsoon in 2017 and expectations of positive quarterly results are expected to push markets higher in the near-term, said analysts.
"An extended period of consolidation over the last one week has rendered stocks slightly cheaper compared to previous month levels. That may have attracted some bargain hunting," said Anand James, chief market strategist at Geojit Financial Services.
Infosys Ltd, which lost about 5 percent on a lower-than-expected revenue guidance, gained 0.88 per cent, while Tech Mahindra Ltd rose 1.5 per cent, rebounding from five days of declines. The IT sub-index of NSE, Nifty IT jumped 0.95 per cent.
"Markets are now able to look beyond IT stocks, which have been a slight disappointment," he said.
The broader Nifty gained 0.36 per cent to 9,136.40, after dropping for five straight sessions. The benchmark BSE Sensex closed 0.29 per cent higher at 29,422.39.
Among Nifty stocks, Grasim Industries was the top gainer, up 6.03 per cent followed by Bank of Baroda, Indiabulls Housing Finance, Zee Entertainment, which gained between 2.2-3 per cent.
Meanwhile, Yes Bank, was the top loser in Nifty, down 3.76 per cent as the private sector lender reported nearly doubling of stressed assets in the March quarter. Yes Bank's gross non-performing assets rose to Rs 2,018 crore in the March quarter compared to Rs 1,005 crore in the December quarter. ICICI Bank, Axis Bank, IOC, Tata Power were the other major losers in the Nifty falling between 1.75-3 per cent. (With agency inputs)