Equity benchmark Sensex rebounded 187 points on Tuesday on fag-end buying in index majors RIL, Bajaj Finance and Titan amid a firm trend in global markets.
Besides, covering-up of short positions by bears supported the late recovery in stocks, helping wipe off losses, traders said.
After a see-saw session, the 30-share BSE benchmark ended 187.39 points or 0.33 per cent higher at 57,808.58. Similarly, the NSE Nifty rose 53.15 points or 0.31 per cent to 17,266.75.
Tata Steel was the top gainer in the Sensex pack, rising 3.10 per cent, followed by Bajaj Finance, Bajaj Finserv, Reliance Industries, Asian Paints and Titan.
On the other hand, PowerGrid, TCS, Tech Mahindra and HDFC twins were among the losers, shedding up to 1.66 per cent.
Of the Sensex constituents, 19 shares closed higher while 11 were in the red.
The Reserve Bank's rate-setting panel began its three-day deliberations on Tuesday to decide the next monetary policy in the backdrop of Budget 2022-23, inflationary concerns and evolving geopolitical situation.
Elsewhere in Asia, bourses in Tokyo, Shanghai and Seoul ended in the positive territory, while Hong Kong was in the red.
Stock exchanges in Europe were trading with significant gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 0.81 per cent to USD 91.94 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,157.23 crore on Monday, according to stock exchange data.
