Gains were led by index heavyweights with Reliance Industries contributing the most.
The Sensex was up 70 points and the Nifty was up 20 points led by SBI on robust Q2 earnings.
FIIs pump in Rs 2,075 crore in past three trading sessions.
The S&P BSE Sensex plunged 301 points to close at 25,490 and the Nifty50 fell 86 points to end at 7,815.
Market breadth is positive with 942 advances and 196 declines.
Markets ended tad lower with financials declining the most ahead of RBI policy review tomorrow.
Sun Pharma emerged as the star performer and closed 4.03 per cent up at Rs 675.45, while Cipla rallied 1.58 per cent to Rs 592.60.
The 30-share Sensex ended down 208 points at 27,057 and the 50-share Nifty closed 59 points lower at 8,094.
Markets gained for the second straight session to kick-off the September F&O series on a robust note.
The broader markets underperformed benchmark indices as the BSE Mid-cap and Small-cap tumbled over 2%.
Jindal Steel and Power was the top loser down 10% followed by Hindalco, Tata Steel, Tata Power which ended down between 0.5-3% each.
Markets ended lower following expiry of July F&O contracts and sales by foreign funds.
BSE Bankex, Healthcare, Capital Goods and Consumer Durables ended higher.
Top 5 losers include Infosys, TCS, ITC, M&M and HUL.
The 30-share Sensex ended down 414 points at 25,481 and the 50-share Nifty slipped 119 points at 7,603.
Markets closed the day in green on favourable domestic factors,
The 30-share Sensex ended down 224 points at 28,442 and the 50-share Nifty ended down 101 points at 8,606.
The 30-share Sensex ended up 140 points at 28,262 and the 50-share Nifty was up 37 points at 8,551.
Market breadth continued to remain strong, with 1899 gainers and 674 losers on the BSEs.
The dollar is king in an intermediate correction, says Sonali Ranade
Markets extended losses to end 1.5% down on Tuesday, amid weak global cues, after investors turned cautious ahead of key economic data and booked profits in rate sensitive shares while the further fall in the rupee continued to weigh on investor sent.
Capital goods shares continued to trade firm in late noon despite weak market trend on the back of encouraging core sector growth in February.
Banks stocks continued to trade weak along with FMCG major ITC.
The 30-share Sensex ended up 248 points at a record closing high of 27,346.
Financials were the top losers while oil shares also declined amid weak crude oil prices.
BSE Midcap index outperformed the benchmark indices to end with 0.4% gains.
Sensex, Nifty put up a good show in closing trade.
Engineering major BHEL rebounded from its day's lows to end around 1% higher.
Combined net profit of BSE500 companies at $ 63 bn is 2.3% of GDP; global average is 5%.
The Indian rupee also trimmed most of its early gains and was trading at Rs 61.28 compared to its Wednesday's close of Rs 61.31 to the US dollar.
Select metal stocks rebounded while power stocks extended losses after SC verdict on coal block allocations.
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.
The S&P BSE Sensex gained 115 points to end at 24,338 and the Nifty50 climbed 42 points to close at 7,404.
Sun Pharma was the top gainer after SPARC received Sebi nod to raise up to Rs.250 crore through a rights issue
Among the private banking majors ICICI Bank and HDFC Bank were down 0.2%-0.5% each.
The S&P BSE Sensex ended 46 points lower at 24,824 and Nifty50 settled at 7,555, down by 8 points after hitting intra-day high of 7,600.45.
The market breadth in BSE remains positive with 1,554 shares advancing and 1,196 shares declining.
Investors accumulated quality stocks at valuable and attractive levels.
It was the RBI which destroyed our $-job economy. It is for the RBI to resurrect it by instituting news ways of managing the INR, says Sonali Ranade
The India Meteorological Department on Tuesday said the monsoon this year is expected to be 'above normal.'