Shares ended with marginal gains after a day of volatile trading on Wednesday, supported by private banks.
The Nifty closed 0.16% higher at 17,604.95, after having fallen as much as 0.45%. Sensex ended up 0.09% at 59,085.43.
Apollo Hospitals and IndusInd Bank were the top gainers on Nifty, up 3.4% and 2.9%, respectively.
Nifty Private Bank added 1.6%, with shares of RBL Bank jumping nearly 17%. The stock has risen for the past two days after its board approved raising funds.
Shares of NDTV Ltd gained 4.99% to their highest in 14 years, a day after billionaire Gautam Adani's conglomerate said it seeks to control a majority stake in the television media company.
Indian equities are expected to post only minimal gains for the rest of the year amid rising volatility, according to strategists polled by Reuters, who cautioned that the risk to that lacklustre outlook is skewed to the downside.
IT stocks continued their downtrend, with the Nifty IT index down 0.34%. The index has shed 3.6% in the previous two sessions.
Meanwhile, global markets slid amid poor economic data from around the world and fading hopes for a less aggressive pace of central bank interest rate hikes.
Investors are also circumspect ahead of the US Federal Reserve's Jackson Hole Symposium later this week, bracing for chair Jerome Powell to stick to hawkish tone.
