The BSE benchmark Sensex recovered by 86 points on fresh buying mainly in realty, metal, banking, healthcare and IT stocks.
The 30-share index resumed lower at 18,802.82 points and dropped further to 18,786.14 in early trade.
Later, the BSE barometer recovered by 95 points to trade at 18,912.87 points after Barack Obama won a second term in the White House overcoming a stiff initial challenge from his Republican challenger Mitt Romney..
The NSE 50-share Nifty also moved up by 20.90 points or 0.37 per cent to 5,745.30 points.
Major gainers were SBI (1.52 per cent), Hidnalco (1.38 per cent), Tata Steel (1.28 per cent), Jindal Steel (1.28 per cent), ICICI Bank (1.15 per cent) and Sterlite Ind (1.13 per cent).
Among major losers, Tata Power dropped by over 1 per cent and Reliance Industries by 0.42 per cent.
Bharti Airtel whose profit declined for 11th straight quarter was trading down by 0.64 per cent.