TCS, Bajaj Auto, Adani Ports and Cipla were the top gainers on BSE Sensex while Coal India, GAIL, Dr Reddy's and Infosys lost the most on the index.
The 30-share Sensex ended lower by 61 points at 29,122 mark and the 50-share Nifty slipped by 12 points to close at 8,797.
The HSBC/Markit Purchasing Managers Index for the services industry inched up to 47.2 in November from 47.1 in October, the fifth sub-50.0 reading and indicated an output contraction across the Indian service economy.
Hawkish guidance by the US Fed raises concerns it could tie the hands of RBI from trimming rates.
Indian indices have hit all-time highs in the New Year and the sentiment remains strong. All valuations are also at extremely high levels, cautions Devangshu Datta
India's private sector activity contracted further in August, reflecting faster contractions of both manufacturing and services output, amid decline in new orders and tough economic conditions.
Snapping a two-day fall, the rupee opened strong at 59.49 a dollar from the previous close of 59.76 at the Interbank Foreign Exchange Market and then touched a low of 59.59.
The optimism in global markets could help India as the rebound in GDP is expected to continue and get more broad-based.
Devyani Khobragade, deputy consul general at the Indian Consulate in New York, who was arrested two weeks ago on changes of allegedly submitting fraudulent documents in support of her maid and babysitter to the US State Department, will have to appear in court on January 13.
L&T, ONGC and banking scrips power gains in today's trade
The economy could return to 8% growth by the end of 2017-2018, says Arvind Panagariya, vice-chairman NITI Aayog.
The global rating agency expects the economy to pick up in the next two financial years.
Participants are keenly awaiting the rollovers to the next series ahead of the expiry of June F&O.
Investors indulged in buying beaten down blue chips at lower and attractive levels.
Markets will continue to remain volatile till the Chinese economy shows some signs of stability
ONGC was the top performer while private banking major ICICI Bank extended gains
It was a "bloody Monday" for Chinese stock markets as shares once again nosedived in the sharpest decline since 2007.
The Sensex ended down 134 points at 28,559 and the Nifty ended 35 points lower at 8,554
The fact that the US recovery needs an elaborate defence suggests that things are far from certain.
At this point of time, the requirement of the economy is obviously more investment, which will create more jobs and increase purchasing power that will sustain a high level of production, says K M Chandrasekhar.
Bank of America Merrill Lynch believes this would ease pressures on CAD as $10 a bbl fall in oil price reduces CAD by $8 billion or 0.4 per cent of GDP.
The Sensex closed the day at 27,490, higher by 479 points and the Nifty ended at 8331.95, up 150.45 points.
GDP growth in November is the second-highest since January 2012 when it had expanded 5.7%.
The government will release the Index of Industrial Production for July 2015 on Friday, September 11, 2015.
Financials were the top losers while oil shares also declined amid weak crude oil prices.
Markets in countries whose economic fortunes were closely linked to China's growth tumbled.
The 30-share Sensex ended down 538 points at 26,781 and 50-share Nifty ended down 152 points at 8,067.
Markets closed the day in green on favourable domestic factors,
The 30-share Sensex ended down by 59 points at 27,027 and the 50-share Nifty slipped 7 points at 8,087.
The broader markets outperformed the benchmark indices- BSE Midcap and Smallcap indices gained 0.4% each
However, IT stocks fell on weak growth forecast by Gartner
The 30-share Sensex ended lower by 46 points at 27,842 and the 50-share Nifty slipped 17 points to trade at 8,378.
The Sensex ended up 380 points at 27,888 and the Nifty advanced 111 points to end five points shy of 8,400.
Traders are waiting for the earnings season to kick off.
IDS-2 and raids to uncover black money stash keep receipts flowing
Sensex closed 63.82 points higher at 26,851.05 in Muhurat trading; Nifty rises 18.65 points to end at 8,014.55.
The Sensex ended up 244 points at 28,504 on strong global cues.
Tata Motors, ONGC, HDFC and TCS were the top gainers.
Market breadth on the BSE ended firm as 1,908 shares advanced and 1,156 shares declined
IT majors along with metal names Sesa Goa and Hindalco buck trend.