Sustained buying in the trade on Thursday trade provided cushion to the indices that eventually led to both the Sensex and Nifty wrapping up the session with gains of over 1%.
"Today is largely seen as a corrective recovery in the market because it had gone into an oversold territory", said Deven Choksey, promoter, KR Choksey. The stock ended down 2.05 per cent or Rs 4.30 at Rs 205.45. The broader markets remained under pressure, with the small-cap index falling by 0.52% and mid-cap 0.09%.
On the NSE market breadth, the Nifty50 provisionally closed (at 3.30 p.m.) higher by 122.60 points or 1.22 per cent at 10,166.70 points.
Top gainers in the Nifty 50 included Bharti Airtel, Maruti Suzuki India, Vedanta, Tata Motors, IndusInd Bank, Hindalco Industries and Adani Ports - up between 1.6 per cent and 3 per cent.
The 30-share sensitive index had lost 205 points on Wednesday following the Reserve Bank's decision to hold interest rates.
However, among the laggards stood pharmaceutical majors Sun Pharma, Cipla, and IT companies like Wipro, TCS, in addition to the state-run Coal India.
The six-member Monetary Policy Committee (MPC), headed by Reserve Bank of India Governor Urjit Patel, in its bi-monthly monetary policy review kept repo rate unchanged at 6 percent and reverse repo at 5.75 percent.
All the sectoral indices on the National Stock Exchange (NSE) traded in the green with the auto, media, metals and PSU banking indices gaining over 1%, during the day.
Brokers said buying by domestic institutional investors (DIIs) and a firm trend at other Asian bourses improved the market sentiment.
Indian shares rose more than 1 percent on Wednesday, recovering from earlier. Paris CAC fell 0.29% and Frankfurt's DAX shed 0.13%.