The broader markets gained mid-caps and small-caps rising 0.3-0.4% on the BSE.
Yes Bank, Wipro, Kotak Bank, M&M, Sun Pharma, Maruti, HDFC, Hero MotoCorp, Infosys, TCS, L&T, Bajaj Auto and HUL were among the top gainers, rising up to 6 per cent.
L&T was the top gainer in the Sensex pack, spurting over 6 per cent, followed by Hero MotoCorp, HDFC Bank, IndusInd Bank, Maruti, HDFC and HCL Tech. On the other hand, ITC, SBI and Bharti Airtel ended in the red.
Geo-political concerns over death of a Saudi journalist, Brexit and likely breach in Italy's budget also kept investors cautious.
L&T was the top gainer in the Sensex pack, rallying 4.81 per cent, followed by M&M, Sun Pharma, Tech Mahindra, NTPC, SBI, ICICI Bank and Titan.
The broader NSE Nifty, on the other hand, ended 2.70 points, or 0.02 per cent, lower at 11,555.90 in its third straight day of losses.
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The Sensex rally was driven by Tata Motors, Vedanta, Bharti Airtel, Maruti, Reliance Industries, Tata Steel, Larsen and Toubro and HCL Tech.
At the close, the 50-share NSE Nifty was at 8,611.15, up 19.90 points, or 0.23 per cent, after moving between 8,637.15 and 8,555.20.
Losers include ONGC, Bajaj Finance, Reliance, SBI, Hero MotoCorp, ICICI Bank, L&T, Vedanta, Yes Bank and Axis Bank, falling up to 2.54 per cent. On the other hand, Tata Steel, PowerGrid, HCL Tech, Kotak Bank and Maruti were the top gainers on Sensex, rising up to 2.31 per cent.
DLF, Indiabulls Real Estate, HDIL, YES Bank, Union Bank of India and Maruti Suzuki are down 4-12% on NSE.
Broader markets outperformed benchmark indices with BSE Midcap and BSE Smallcap up 0.5% and 0.6%.
The 30-share Sensex ended up 12 points at 28,517 while the 50-share Nifty ended nearly unchanged at 8,660.
Investors lost around Rs 1.57 lakh crore in market valuation on Friday.
The NSE Nifty ended at 5,546 - down 28 points, a day ahead of the derivatives expiry.
BSE market breadth was fairly positive. Out of 3,010 stocks traded, 1,858 advanced while 1,013 declined in trades.
On the Sensex chart, Sun Pharma was the top loser, followed by Maruti, L&T, Hero Motocorp, Infosys, ONGC and RIL.
In line with Sensex, the broader indices also saw hefty losses. Large cap index tumbled 0.79 per cent, midcap 0.87 per cent and smallcap 0.57 per cent.
Banks led the decline with Nifty Bank and BSE Bank index dropping over 3% each.
The Sensex and Nifty remained above their key levels of 36,000 and 10,900 throughout the session, indicating strong investor optimism after a prolonged spell of caution.
Top gainers in the Sensex pack included Bajaj Finance, ONGC, Yes Bank, HDFC, HCL Tech, Tech Mahindra, TCS, ICICI Bank and RIL, rising up to 3.57 per cent.
The European indices, including the FTSE, CAC and DAX, had trading in a directionless manner in the middle of the day.
The Nifty closed at 4875, up 19 points. The market breadth was negative. Out of 2907 stocks traded on the BSE, there were 889 advancing stocks as against 1924 declines.
The indices had recovered from its lowest in four-weeks after investors took to bargain hunting in select sectors in mid-morning trades but dropped following weakness in banking space.
The Nifty ended at 5430, up 12 points. The markets were trading in a listless manner prior to the actual event, but took off immediately thereafter as the rate hike was seemingly priced in and was seen as a decent attempt to strike a balance between inflation and growth expectations, given that inflation was stubbornly holding on to the 10% mark for the past five months.
Investors started booking profit at record highs in absence of cues from global markets that remained closed for the New Year holiday.
The BSE mid-cap and small-cap indices were down 1% and 1.7% each. Market breadth was negative 2037 stocks which declined for 881 stocks which advanced.
The NSE Nifty ended at 6075, up 13 points, thanks to strength in the oil, IT and realty stocks.
The market meltdown triggered by the US debt downgrade continued with full force on Tuesday too as the Indian stock markets tanked again.
NSE Nifty jumped 59 points to end at 6,018 -- crossing the 6K mark after Tuesday, September 21.
The NSE Nifty moved in a range of 64 points, from a high of 5413 the index slipped to a low of 5349, and finally settled with a loss of 41 points at 5368.
The NSE index finally ended at 5,383 - up 31 points. Most of the sectoral indices were in the green today with realty index jumping 2.2% at 3,337. Bankex and IT were also up.
