MUMBAI: Benchmark indices found firmer ground on Monday after a three-session losing streak, propped up by buying in banking, finance, FMCG and auto counters despite a bearish trend overseas.
After a weak beginning, the 30-share BSE Sensex recovered the lost ground and ended 300.44 points or 0.51 per cent higher at 59,141.23.
On similar lines, the broader NSE Nifty jumped 91.40 points or 0.52 per cent to close at 17,622.25.
Mahindra & Mahindra was the top gainer in the Sensex pack, climbing 3.05 per cent, followed by Bajaj Finance, SBI, Nestle India, HUL, Bajaj Finserv and HDFC.
In contrast, Tata Steel, ICICI Bank, PowerGrid, NTPC, Asian Paints, L&T and UltraTech Cement were among the laggards, shedding up to 2.50 per cent.
The market breadth was positive, with 22 of the 30 Sensex constituents closing in the green.
"The global market was expected to battle volatility as we approach the Fed policy announcement, while the latest inflation data remained above the estimates. The policy tone indicates hawkish measures, suggesting elevated hikes, leading to the pull-out of FIIs money from the Indian equities. However, this trend is expected to be short-lived, as future inflation trend forecasts a clampdown, bringing stability in policy stance by the end of this year," said Vinod Nair, Head of Research at Geojit Financial Services.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said markets are likely to remain range-bound ahead of US Fed interest rate decision to be announced on September 21 (Wednesday).
"While it is widely expected that Fed will go for at least 75 basis points hike, however given the stubbornness of US inflation and robust numbers from US data points like retail sales and a strong labour market, there is a high chance that the aggressive stance towards rate hike is likely to continue for a prolonged time. Even the Bank of England is likely to announce a 50 bps rate hike to combat inflation and could keep global markets under pressure," he noted.
In the broader market, the BSE midcap gauge declined 0.16 per cent and the smallcap index dipped 0.17 per cent.
The BSE FMCG index gained 0.98 per cent, while auto climbed 0.78 per cent, financial services 0.58 per cent, teck 0.43 per cent and energy 0.33 per cent.
However, metals fell by 1.25 per cent, followed by realty (0.99 per cent) and power (0.52 per cent).
Elsewhere in Asia, markets in Seoul, Shanghai and Hong Kong ended lower.
European equity markets were also quoting in the negative territory in the afternoon session.
Wall Street had ended lower on Friday.
Meanwhile, the international oil benchmark Brent crude declined 1.37 per cent to USD 90.10 per barrel.
The rupee pared its initial gains and settled 2 paise lower at 79.80 (provisional) against the US dollar on Monday, weighed down by the strength of the greenback in the overseas market.
Foreign institutional investors (FIIs) offloaded shares worth a net Rs 3,260.05 crore on Friday, according to data available with the BSE.