The benchmark index of the Bombay Stock Exchange (BSE) closed 0.33 percent or 65.50 points higher, at 19,930.64 points, after plunging to 19,615.51 points in the morning session.
The BSE 30-share index (Sensex) opened in the positive at 19,997.83 points and touched a high of 20,056.44 points and low of 19,615.51 points in intraday trade. At the National Stock Exchange (NSE), the 50-share S&P CNX Nifty ended 0.21 percent or 12.45 points higher at 6,001.15 points.
Broader market indices witnessed mixed trading. The BSE midcap closed 0.30 percent down at 8,241 points and the BSE smallcap index ended 1.06 percent down at 10,455 points. The Bankex index fell 1.6 percent. However, metal and auto indices closed in the positive.
Top gainers at the Sensex included Hero Honda, up 5.46 percent at Rs.1,912.85; Hindalco Inds, up 4.86 percent at Rs.222.35; Cipla, up 4.38 percent at Rs.353.80; Bharti Airtel 3.77 percent higher at Rs.324.90 and Tata Steel 2.98 percent higher at Rs.623.40.
Reliance Communications was the biggest loser. The scrip ended 4.88 percent down at Rs.153.90 on speculations that the company might come under the regulatory scanner for its alleged involvement in the Rs.1,76,000 crore 2G spectrum allocation scam.
Other major losers were ICICI Bank, 3.14 percent down at Rs.1,164.65; Jindal Steel, 1.73 percent down at Rs.660.40; Tata Power, 1.18 percent down at Rs.1,328.10 and ONGC, 1.17 percent down at Rs.1,277.70.
Most global markets traded in the positive Thursday. Shanghai Composite index ended 0.94 percent higher at 2,865.45 points. Hong Kong's Hang Seng closed 1.82 percent higher at 23,637.40 points and the Japanese Nikkei index advanced 2.06 percent to 10,013.60.
European markets were also trading in the positive. Britain's FTSE 100 was trading 1.20 percent higher at 5,764 points. The German DAX was up 1.38 percent at 6,792 points and the French CAC 40 was ruling 1.48 percent higher at 3,848 points.