The Sensex closed at 16,071, up 159 points and the Nifty ended at 4,765, up 55 points, as per provisional data.
Buying in telecom, metal, realty, power, auto, oil & gas exploration, select banking and capital goods stocks helped the markets to recover.
However, selling in individual stocks like SBI, ITC, Infosys, NTPC, Ambuja Cements and ACC limited the gains to some extent.
Nifty trading below 4650; RIL, SBI, Wipro dip
At 12:04 pm, the Sensex fell 290 points to 15,621 and the Nifty declined 85 points to 4,625.
Heavyweights Reliance Industries, SBI, L&T, TCS, L&T, HDFC, DLF, HUL and Wipro were down 2-3 pc.
The market breadth turned mixed; about 1,494 shares advanced while 1,441 shares declined on the BSE. Nearly 829 shares were unchanged.
On the sectoral front, the sell-off was seen in auto, FMCG, technology, banking, pharma, cement and select power stocks.
However, buying continued in telecom stocks. GAIL, BHEL, Suzlon, Cairn, Hindalco, Sterlite, HCL Tech and Reliance Capital were the other gainers.
Nifty trading lower; RIL, ONGC dip
At 10:59 am, the Nifty was trading sharply lower. Banking, technology, cement, FMCG, auto, select power and metal stocks were witnessing selling pressure.
The Sensex was down 185 points at 15,725 and the Nifty fell 48 points to 4,662. About 1,616 shares advanced while 1,288 shares declined on the BSE. Nearly 860 shares were unchanged.
Reliance Industries fell over 2 pc, ONGC, L&T and HDFC slipped 1.7-2.4 pc.
In the midcap space, Rashtriya Chemical, IFCI and Patni Computer went up 5-8 pc. However, REI Six Ten, Kansai Nerolac, India Cements, Nagarjuna Construction and Atlas Copco fell 2.5-6.5 pc.
In the smallcap space, Murli, TV TodayNetwork, SpiceJet, Hinduja Venture and C and C Construction moved up 6-12 pc. However, Webel SL Energy, Prime Securities, MSP Steel, Advani Hotels and Jindal Worldwid lost 4-5 pc.
Negative Asian markets also weighed on the markets. Kospi was up 1.5 pc and Nikkei gained 1.2 pc. Hang Seng fell 0.9 pc. Straits Times, Taiwan and Jakarta declined 0.4 pc.
Mkts open weak; Sensex down by 110 pts
Weak Asian markets and fall in US markets weighed on the markets. At 9:56 am, the Nifty fell 31 points to 4,679 and the Sensex lost 110 points to 15,801. The broader indices were flat in trade.
About 366 shares advanced while 472 shares declined on the NSE.
Among the frontliners, ITC, HUL, Tata Power, Reliance Industries, Idea Cellular, Hindalco, M&M, SBI, ACC, PNB, Reliance Power, L&T, Wipro and Infosys were the gainers in the early trade.
However, Suzlon Energy surged 5.7 pc post debt refinancing plan. GAIL, Sun Pharma, BHEL and Reliance Communications were the other gainers.
Asian markets were trading lower. Nikkei and Kospi fell 1.3-1.4 pc. Straits Times, Hang Seng, Jakarta and Taiwan Weighted declined 0.3-0.8 pc. Shanghai was flat. SGX Nifty lost 0.4 pc.