The key domestic indices closed the day's trade in the red - more than half per cent down - as heavy selling pressure was witnessed in automobile, healthcare and consumer durables' stocks.
While, Drug major Cadila Healthcare surged as USA health regulator has inspected the company's Moraiya plant and found it meeting the manufacturing norms.
Shares of SBI and its associates soared after the Cabinet approved their merger, a step aimed at strengthening the sector through consolidation of public banks.
Barring FMCG which witnessed profit-booking, realty, metal, consumer durables and teck sectors found good buying interest, while secondline shares of midcap and smallcap company shares outperformed headline indices. The benchmark BSE Sensex was up 31 points or 0.11 percent at 28,186 in early trade while the broader Nifty index was up 13 points or 0.15 percent at 8,737.
The gauge had lost 196.06 points in previous two sessions. However, FMCG declined 80 points. A mixed trend at other Asian bourses, tracking another record closing at the U.S. markets yesterday after President Donald Trump reiterated his promise to unveil a tax reform plan soon, too influenced sentiment, brokers said. Shanghai rose 0.52 per cent, Hang Seng increased 0.47 per cent, Nikkei declined 0.47 per cent.
European shares were trading lower with London's FTSE down 0.40 per cent and Paris 0.32 per cent and Frankfurt lower by 0.32 per cent.
In terms of investments, the provisional data with exchanges showed that foreign institutional investors (FIIs) bought stocks worth Rs 225.84 crore, whereas the domestic institutional investors (DIIs) invested scrip worth Rs 248.98 crore. Mid-cap index increased 164 points and Small-cap rose 179 points. With reference to media report captioned UK Regulator approves Sun Pharma's Generic drug of Tobramycin.
Major Sensex losers were: Tata Motors, down 10.32 per cent at Rs 436.55; Sun Pharma, down 4.25 per cent at Rs 622.50; Tata Steel, down 2.57 per cent at Rs 460.10; Adani Ports, down 2.09 per cent at Rs 300.50; and Hero MotoCorp, down 1.99 per cent at Rs 3,098.40. ITC, Dr Reddy, ICICI Bank, Coal India, Power Grid and LT are the stocks that are keeping check on the index gains on Thursday.
The NSE Nifty fell by 67.60 points or 0.77 per cent to 8,724.70 points, and the BSE Sensex plunged by 183.75 points, or 0.65 per cent down to 28,155.56 points.
Indian shares rebounded from two days of losses on Thursday, with IT stocks leading the surge after TCS, India's largest software company, said its board of directors would consider a proposal for buyback of equity shares at its meeting to be held on February 20, 2017.
The total turnover on BSE amounted to Rs 2,618.23 crore, lower than turnover of Rs 3,412.57 crore registered during the previous trading session.