Market benchmark Nifty recovered by 29.45 points to end at 8,170.20 on fresh buying in realty, auto, banking and finance sectors on the back of higher global cues.
Asian markets ended higher after the previous day's sell-off and a rebound on Wall Street, ahead of the UK's June 23 referendum vote on its future within the European Union.
Key indices in China, Hong Kong, Japan, South Korea, Singapore and Taiwan rose by 0.07 - 1.07 per cent.
European markets were also trading higher as key indices in France, Germany and UK rose by 1.13 - 1.27 per cent.
Foreign portfolio investors sold shares worth net Rs 156.75 crore yesterday, as per provisional data.
The 50-share index resumed higher at 8,176.65 and hovered in a range of 8,195.25 and 8,135.80 before finishing at 8,170.20, showing a gain of 29.45 points 0.36 per cent.
Major gainers were Bharti Airtel (3.03 per cent), Tata Motors (2.21 per cent), HDFC (2.19 per cent) Tata Motors DVR (2.06 per cent) and Coal India (1.84 per cent).
Losers included Tata Power (3.41 per cent), Bharti Infratel (2.74 per cent), Tata Steel (1.53 per cent), Sun Pharma (1.51 per cent) and Dr Reddy's Lab (1.49 per cent).
A total of 749 scrips firmed up, 800 declined while 82 ruled steady.
Turnover in cash segment fell to Rs 17,710.99 crore from Rs 18,345.19 crore yesterday. A total of 11,989.64 lakh shares changed hands in 82,42,528 trades.
The market capitalisation of NSE stood at Rs 98,79,525.14 crore.
