The BSE benchmark Sensex, which touched a four-month low on Monday, made some recovery, gaining 54 points as investors bought fundamentally strong scrips like RIL at prevailing low levels.
The Bombay Stock Exchange index, Sensex, on Tuesday closed 53.67 points higher at 17,560.30, after trading in a range of 17,714.88 and 17,504.27 during the session.
Sensex leader RIL, which has been on a losing streak for the past week, rose by 1.67 per cent to Rs 848.50 a share, followed by Infosys that climbed 0.65 per cent to Rs 2,726.45.
Brokers said trading sentiment improved as investors and foreign funds judged the recent decline was excessive and bought blue chips to avail of attractive lower prices.
“The market entered in an oversold position with most of the stocks dipping to their recent low positions, giving chance to investors to pick them at attractive levels,” said Rajiv Malik of RNM Securities.
Firming trend in Asia and higher opening in Europe also helped. However, the 30-share BSE gauge, Sensex, which had gained 108 points during early trade, shed some of its gains on emergence of profit booking, closing just 54 points higher.
Broad-based National Stock Exchange index Nifty closed about 18 points higher at 5,275.85, after shuttling in the range of 5,322.45 and 5,257.
