The market on Friday snapped seven-day losing streak and closed mildly in the green.
While the Sensex closed 61 points higher at 26,040 level, Nifty rose 6.65 points to 7,985 level.
The Sensex which opened in the negative territory at 25959 level recovered ground and hit an intra-day high of 26,143 level and intra day low of 25,872 level.
The Nifty closed below the crucial psychological level of 8,000 for the second straight session.
MMTC (3.05 percent) and Bajaj Finance (5.55 percent) were the top gainers on the BSE.
Divi's Laboratories (21.87 percent) and Bharat Financial Inclusion (6.27 percent) were the top losers on the BSE.
The Divi's Laboratories stock fell amid news the BSE has sought clarification from Divis Laboratories with reference to news appeared in CNBC TV 18 dated December 23, 2016.
The stock which opened at 1,101 level hit a low of Rs 821, its 52-week low, and recovered later to close at Rs 866.10 level, down 242 points or 21.87 percent for the day.
On the 30 stock Sensex, 16 stocks closed in the green against 14 ending lower.
Axis Bank (2.23 percent) and ONGC (1.20 percent) were the top losers on the index.
Market breadth was marginally negative with 1,258 stocks closing in the green against 1,304 ending in the red.
Global markets
The Shanghai Composite Index fell 0.9 percent to 3,110.15 and Hong Kong's Hang Seng retreated 0.3 percent to 21,574.76. Sydney's S&P-ASX 200 was off 0.3 percent to 5,627.90 and Seoul's Kospi declined a fraction of a point to 2,035.90. India's Sensex added 0.4 percent to 26,077.96. Japanese markets were closed for a holiday. Benchmarks in New Zealand and Bangkok advanced. Taiwan and other Southeast Asian markets declined.
The Dow shed 23.08 points, or 0.1 percent, to 19,918.88. The Standard & Poor's 500 index lost 4.22 points, or 0.2 percent, to 2,260.96. The Nasdaq composite dipped 24.01 points, or 0.4 percent, to 5,447.42.