The India Meteorological Department on Tuesday said the monsoon this year is expected to be 'above normal.'
Bank shares were the top gainer in early trades with Bank of Baroda up over 4%.
Stellar rally in ITC shares along with strength in the Asian equities capped the downside.
Market breadth continued to remain strong, with 1899 gainers and 674 losers on the BSEs.
BSE Midcap index outperformed the benchmark indices to end with 0.4% gains.
Sensex ended up 11 points at 25,561 and the 50-share Nifty gained 16 points to end at 7,640.
Global brokerage firm CLSA is positive on India's growth stroy.
Movement of rupee and crude oil prices will also dictate the trend
Markets have witnessed a gap down opening mirroring losses in the global equities with US markets taking a hit on worries about the health of Chinese economy.