Showing signs of recovery, the market witnessed the Sensex rising 161.82 points trading at 25778.66 whereas the Nifty climbed 47.60 points to 7843.30.
The Bank Nifty performed in green with gains of about 200 points from more than 300 points as ICICI Bank and Axis Bank turned flat.
Trading near the crucial level 7850, the equity benchmarks trimmed losses in late trade despite RBI's rate cut.
HDFC, Maruti Suzuki, M&M, Coal India, Larsen and Toubro and IndusInd Bank topped the buying list.