The foreign portfolio investors were net sellers of equities worth Rs 2,107.93 crore while the domestic institutions were net buyers by Rs 2,289.05 crore.

Benchmark indices recovered from sustained selling in last few days due to heavy support coming from the domestic institutional investors.

Sensex closed 0.75 per cent or 277.01 points up at 36976.85. But in the intra-day trade the Index it was a quite volatile session with the Sensex dipping to a low of 36536 and then rebounding to intra-day high of 37241.77.

The Nifty-50 closed at 10948.25 up 85.65 points or 0.79 per cent.

The Volatility Index India VIX fell 2.80 per cent to 16.12 compared to previous close at 16.58, as Kashmir issue had raised the volatility on Monday.

The foreign portfolio investors were net sellers of equities worth Rs 2,107.93 crore while the domestic institutions were net buyers by Rs 2,289.05 crore.

Rate sensitive sectors gained on Tuesday ahead of the RBI policy announcement . The gainers included BSE Capital Goods (2.12 per cent), Bankex (1.44 per cent), Realty (1.78 per cent) and Auto (1.39 per cent).

The losers included BSE Oil & Gas and BSE IT indices.

Technical View
Mustafa Nadeem, CEO, Epic Research said, "The Nifty rebounded to close above 10900 on the back of the global market cues and technical patterns. A reversal pattern was seen in Monday's chart and a reversal was further strengthened as global markets recovered in early trading hours in Asia."

"Technically this is a short term bounce, for now, we have seen which is seen on the back of some minor short-covering and technical patterns. We may not consider this to evident for a medium-term rebound but this is a kind of relief. The market is still below its short term moving averages and it is important to see how we react to those levels," Nadeem said.

Deepak Jasani, Head Retail Research, HDFC Securities said, "Markets bounced back from 5 month lows on Tuesday after the correction seen on Monday. The gains came despite negative Asian markets. Broad market indices like the BSE Mid Cap and Small Cap indices gained more, thereby outperforming the Sensex/Nifty. The market breadth was positive on the BSE/NSE. Technically, while the Nifty has bounced back, the underlying short term trend remains down. Further downsides are likely once the immediate support of 10826 is broken. Any further pullback rallies could find resistance at 11018-11080."

Market View
"The market is expected to remain volatile, News from global market movements and RBI's decision on rate cut and other measures will affect the direction of stocks, " said Romesh Tiwari, Head of Research, CapitalAim

Equity market will be tracking RBI meeting on Wednesday which may bring good news for the banks and NBFCs in particular and corporates in general.

"After three successive rate cuts in 2019, the market is expecting another 25bps rate cut in order to boost the slowdown in the economy. Downside risk in earnings, dovish scenario worldwide and global trade war uncertainties are likely to compel further for a rate cut," IFA Global Research said.