The Indian equity benchmarks rebounded after witnessing their worst day in over seven months in the previous session led by gains in Reliance Industries, Kotak Mahindra Bank, Tata Consultancy Services, HDFC Bank and Infosys. The benchmarks staged a gap down opening but soon recovered their losses with Sensex rising over 1,200 points from day's lowest level and Nifty 50 index touched an intraday high of 17,160 after hitting a low of 16,782.
The Sensex ended 153 points higher at 57,260 and Nifty 50 index advanced 27 points to close at 17,054.
"If Nifty is able to sustain the level of 17,000, we can witness a positive momentum in the market which can lead to the levels of 17,600. We have observed that indicators like relative strength index (RSI) and moving averages convergence divergence (MACD) are indicating early signs of reversal in the market," said Vijay Dhanotiya, Senior Research Analyst at CapitalVia Global Research.
Twelve of 15 sector gauges compiled by the National Stock Exchange ended lower led by the Nifty PSU Bank index's 2 per cent fall. Nifty Realty, Oil & Gas, Healthcare, Pharma, Media and Auto indices also fell between 0.5-2 per cent.
On the other hand, select IT, Consumer Durables and Financial Services shares witnessed buying interest.
Mid- and small-cap shares underperformed their larger peers as Nifty Midcap 100 index fell 1.35 per cent and Nifty Smallcap 100 index dropped 2.6 per cent.
Kotak Mahindra Bank was top Nifty gainer, the stock rose 2.4 per cent to close at Rs 2,011 after the Reserve Bank of India of allowed Life Insurance Corporation of India to increase stake in the bank.
Reliance Industries advanced over 1 per cent after its telecom arm Reliance Jio Infocomm raised tariffs over the weekend. HCL Technologies, HDFC Life, Titan, Wipro, Bajaj Finserv, Bajaj Finance, Hindalco and HDFC Bank also ended higher.
On the flipside, Bharat Petroleum, Sun Pharma, Adani Ports, UPL, NTPC, ONGC, Axis Bank, Indian Oil and Hero MotoCorp ended lower.
The overall market breadth was extremely negative as 2,434 shares ended lower while 966 closed higher on the BSE.