Indian shares bounced back from a more than two-week low on Wednesday to close over half a percent higher, helped by gains in financials such as HDFC Bank Ltd and Housing Development Finance Corp Ltd.
Analysts had expected the markets to bottom out given strong macro fundamentals.
The benchmark BSE Sensex closed up 0.51 percent at 35,649.94 and the broader NSE Nifty ended 0.62 percent higher at 10,729.85, snapping three straight sessions of losses.
Earlier in the day, both indexes hit their lowest levels since Dec. 11 as investors fretted over political uncertainties in the United States and concerns of a slowdown in global growth.
HDFC Bank and Housing Development Finance Corp were the biggest contributors to the NSE index's gains, rising 2.1 percent and 1.9 percent higher, respectively.