The 30-share BSE Sensex rose 149.48 points to close at 16,862.81 and the 50-share NSE's S&P CNX Nifty jumped 47.10 points to end at 5,064.30.
On the global front, Britain's FTSE gained more than 1%. Among other European markets, France's CAC and Germany's DAX went up 0.5% each. Some Asian markets too showed recovery in late trade - Hang Seng gained 0.5%; Straits Times and Shanghai closed flat.
The final announcement of FPO did not impact ONGC negatively as the stock has already priced in the news's negativity yesterday itself. The company's 42.8-crore shares FPO will open for subscription during September 20-23, 2011.
Largecaps like BHEL, JSPL, L&T, Sterlite, Tata Motors and Maruti closed up 1.5-3%. Ambuja Cements was the biggest gainer; the stock shot up 5%.
Midcaps like Hexaware Tech, Educomp Solutions, Polaris, Amtek Auto and GSFC rallied 6-8%. However, HDIL, TV18 Broadcast, Dewan Housing, Federal Bank and HT Media dropped 3%.
About 830 shares advanced while 591 shares declined on NSE. Total traded turnover was more than Rs 1.25 lakh crore.
Markets recover on following global cues
Sensex and the Nifty were up in the afternoon trade. While the BSE benchmark Sensex was up by 27.99 points or 0.17 to 16,741 level. And Nifty was up 11.40 points or 0.23 % to 5,028.60.
Of the 13 sectoral indices only four indices were in the positive territory. These were Oil & Gas (1.34%), Auto (0.87%), IT (0.57%) and Capital Goods (0.43%). Realty sector was still the worst hit but it had managed to reduce its losses as it was down only 2.83%.
The market was up in the afternoon trade led by oil & gas, technology, capital goods and auto (four-wheeler) stocks. European markets, which lost 3.5-5% yesterday,started their day on gains; Germany's DAX, France's CAC, and Britain's FTSE were up more than 1%.
Reliance Industries recovered all its losses and gained over 2%. ONGC too rose nearly 2%.
In the technology space, TCS, HCL Tech and Wipro were up 1-2%; Infosys went up 0.5%. M&M, Tata Motors and Maruti from auto pack rallied 2-3%.
BHEL, HDFC Bank, HDFC, Kotak Mahindra Bank, L&T, Axis Bank, SAIL and Hindalco were other gainers.
However, SBI, Bharti Airtel, ICICI Bank, Sun Pharma, Power Grid, Reliance Power, Grasim, Reliance Communications, Reliance Capital and Reliance Infrastructure were down 1-2%, though these stocks showed some recovery from day's low.
After sharp fall index regains lost ground. Sensex at 16,607.89
After falling by 200 points the Sensex recovered part of the losses and is currently down by 105.44 at 16,607.89. Nifty too fell sharply and then recoved part of the losses, it was trading at 4,982.15 down by 35.05 or 0.53 %.
Among the sectoral indices only Auto and Oil & Gas were in the positive territory by 0.63% and 0.28% respectively. The worst hit sectoral index was Realty that was down by 3.37. It was followed by Bankex and TECk which were down by 1.57% and 1.24% respectively. Other sectoral indices has lost less than 1%.
Among the major stocks in the banking space- SBI and ICICI Bank were down 3% each. HDFC Bank, Axis Bank and Kotak Mahindra Bank lost nearly 2%.
Realty major DLF went down over 4.5%.
In the technology space, Wipro, TCS and Infosys slipped more than 1.5%. Among other largecaps, L&T, NTPC and Power Grid declined 1-2%.
However, ONGC and Ambuja Cements were moving up; both gained 1.5% each. M&M, Tata Motors, Maruti and BPCL moved up 1%.
About two shares declined for every share gaining.
Benchmark indices open negative. Sensex down by 84.73 points
The benchmark indices in India opened on the negative side. While Europe crashed 4-5% yesterday, also Dow Futures fell by more than 2% on recession fears and debt worries.
Benchmark index of the Bombay Stock Exchange (BSE), Sensex, was down by 84.73 points to 16,628.60 signifying a loss of 0.51%. A tthe same time the 50-stock index, S&P CNX Nifty, that is the benchmark of National Stock Exchange (NSE) fell 36.45 or -0.73% to 4,980.75.
ADAG stocks like Reliance Power, Reliance Infrastructure and Reliance Communications were down on profit booking.
In the technology space, TCS, Wipro and Infosys were taking beating in early trade.
DLF declined nearly 2% post approval given to Land Acquisition bill by government.
Maruti Suzuki, BPCL, SAIL, Sterlite, JSPL, Bajaj Auto and ONGC were witnessing buying interest.
Everonn Education was locked at 10% lower circuit. Brooks Labs, which listed yesterday, fell another 7.5% to below Rs 60 a share.
Meanwhile, Asian peers were trading lower. Hang Seng, Nikkei, Straits Times, Kospi and Taiwan fell 1% each. Shanghai was down 0.3%.