Analysts agree China, Greece and US Fed developments need careful monitoring but India should gain, over time, from relative rise of the dollar and fall in commodity prices.
The recovery was led by pharma majors led by Dr Reddy's Labs.
Broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up 0.8%-1%.
The broader Nifty too fell for the second straight session and closed with a loss of over 62 points, or 0.54 per cent, at 11,520.30, after hovering between 11,496.85 and 11,602.55.
The broader NSE Nifty closed below the 10,600 mark by plunging 98.15 points, or 0.84 per cent, to 11,582.35 after shuttling between 11,567.40 and 11,751.80.
Markets will be closed on Thursday and Friday on account of Holi and Good Friday, respectively.
Sesnsex ended the day flat on heavy selling pressure.
The BSE benchmark Sensex surged about 241 points to end at 35,165.48 and the NSE Nifty gained 84 points to close at 10,688.65.
Financials were among the top losers along with Sun Pharma and index heavyweight Reliance Industries
ONGC was the top performer while private banking major ICICI Bank extended gains
Markets closed in the red on domestic worries.
The S&P BSE Sensex ended 80 points up at 23,789 while the Nifty50 closed at 7,235, up 24 points.
The CSI300 of the leading Shanghai and Shenzhen A-share listings has lost almost 11 per cent this week.
Bank shares were the top gainers led by ICICI Bank.
The India growth story is still intact, and fall in the Indian stock markets is an imported one and if the government succeeds in legislating the GST and Land Bill, India could yet emerge as a winner believe stock market experts
Notable losers were ONGC, Axis Bank, ITC, SBI, ICICI Bank, NTPC, Hero Motocorp, Sun Pharma and Bharti Airtel who fell by up to 2.80 per cent.
The rupee closed at Rs 66.21 in its last trading session.
Nifty is likely to remain under selling pressure unless and until it breach the 7,700-7,720 levels on closing basis.
Investors turned cautious ahead of the US Fed meet outcome later today and July F&O expiry.
Indian equity markets registered their highest single-day percentage gains since early October.
With a rise of around 30 per cent in the benchmark index S&P BSE Sensex, 2014 has been the best year for Indian equity markets since 2009, when the benchmark index surged 81 per cent.
The 30-share Sensex ended up 8 points at 27,508 and the 50-share Nifty closed 1 point higher at 8,284.
Reliance Industries was the top Sensex gainer up 5.6% after the company reported better-than-expected net profit growth at 12% in the second-quarter aided hby higher gross refining margins.
Investors engaged in profit booking in the recent gainers at attractive and higher valuations.
The US FOMC concludes its two-day meeting today while the Bank of Japan will start its two-day meeting today.
The broader markets ended mixed with mid-caps gaining 0.1 per cent and small-caps falling 0.1 per cent on the BSE.
The broader markets ended negatively with mid-caps and small-caps shedding 0.5 per cent on the BSE.
The broader markets ended firm with mid-caps and small-caps gaining nearly 0.5 per cent on the BSE.
The broader markets were firm with mid-caps and small-caps gaining 1-1.4 per cent on the BSE.
Market breadth is positive with 942 advances and 196 declines.
All sectoral indices, led by realty, PSU, oil & gas and banking, were in positive zone with gains of up to 1.25 per cent.
The Sensex soared 402 points higher to end at 25,720 and the Nifty surged 130 points to close at 7,819.
Market breadth remained strong with 1,581 advances over 1,018 declines on the BSE
Top gainers from the Sensex pack are Asian Paints, Bajaj Auto, ITC, NTPC, L&T and HDFC, all up 2% each
Markets gained for the second straight session to kick-off the September F&O series on a robust note.
Fear factors weights on markets, Sensex, Nifty struggle to keep pace.
Markets shrugged off RBI's neutral stance on key policy rates.
Japan's Nikkei fell 0.5% and South Korea's Kospi lost 1.3%.
S&P upgraded India's credit outlook to 'stable' from 'negative' earlier.
Nifty September F&O series ended lower after seven consecutive positive series with Metal Index falling the most
