Market commenced in the red on major sell-off following the BJP-led NDA's defeat in Bihar assembly polls but revival of buying after Fitch said the verdict is unlikely to have any major implications on the economic front helped recovery.
Positive statements on election result from global financial services majors including Citigroup, Nomura and Bank of America Merrill Lynch also helped dissipate some fears.
Citi said it remained positive on the country's economic cycle and the market, despite BJP's defeat.
The gauge had cumulatively lost 325.35 points in previous three days.
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On similar lines, the Nifty NSE, which slipped below the 7,800-level at the outset and hit a low of 7,771.70, bounced back at a rapid pace to touch session's high of 7,937.75 and concluded 39.10 points, or 0.49 per cent down at 7,915.20.
Out of the 30-share Sensex pack, 19 settled lower.
Shares of Sun Pharma emerged as the top loser among Sensex constituents by tumbling 5.82 per cent after the firm reported a 46 per cent dip in consolidated net profit.
Other major losers included, BHEL, Dr Reddy's, GAIL, Wipro, Cipla, ICICI Bank, HDFC Bank, HDFC, L&T, Coal India, ONGC, Hindalco, NTPC, Bharti Airtel, TCS and Bajaj Auto.
On the other hand, gains in Tata Motors, Maruti Suzuki, Vedanta, ITC, SBI, Lupin, RIL, Tata Steel, M&M and Axis Bank helped in cushioning the fall.
Broader markets outperformed the Sensex, with small-cap index gaining 0.78 per cent and mid-cap rising 0.42 per cent.
On the global front, Asian markets closed mixed. Hong Kong's Hang Seng ended 0.61 per cent lower but Japan's Nikkei stood out as it closed 1.96 per cent higher. European indices were slightly higher in early trade.