The Sensex bounced back in early trade on Thursday, climbing 266 points, tracking gains in index majors RIL, Maruti and ICICI Bank amid mixed global trends.
The BSE benchmark Sensex was trading with a gain of 266.59 points at 53,293.56 in early deals. The NSE Nifty rose 70.6 points to 15,869.70.
Among the Sensex pack, Kotak Mahindra Bank, Tata Steel, Reliance Industries, Maruti Suzuki India, Axis Bank and ICICI Bank were the major gainers.
Bajaj Finance, Hindustan Unilever, M&M and ITC were among the laggards.
Elsewhere in Asia, markets in Tokyo and Seoul were lower, while Shanghai and Hong Kong were in the green during mid-session deals.
The US markets ended on a mixed note on Wednesday.
Meanwhile, international oil benchmark Brent crude gained 0.3 per cent to USD 116.61 per barrel.
The Sensex had settled 150.48 points or 0.28 per cent lower at 53,026.97 on Wednesday. The Nifty declined 51.10 points or 0.32 per cent to 15,799.10.
"The decline in FPI selling to Rs 851 crore yesterday from the June average of around Rs 2,700 crore also can be interpreted as early signs of selling exhaustion. Data will have to be watched to see whether this trend sustains," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 851.06 crore on Wednesday, as per exchange data.
In the near-term market movement will be increasingly influenced by the FY23 Q1 results expected from the second week of July onwards, Vijayakumar added.
