The overall breadth of the markets was negative The stock markets finished Tuesday's session with strong gains, recovering from some volatility witnessed in the first half of the day.
The BSE benchmark index Sensex closed 347 points higher at 36,652, while the NSE Nifty settled at 11,067, up 100 points from the previous close.
While Tuesday's gains in equity markets provided some relief to investors concerned because of an anticipated cash crunch in the NBFC or non-banking financial company segment, caution prevailed on the back of the rupee moving near all-time lows against the dollar.
Advances in the markets were led by buying witnessed across banking, financial services, consumer goods and pharma stocks.
The Sensex had shed 1785 points, or 4.7 per cent, in the past five consecutive sessions.