Market benchmarks Sensex and Nifty broke their three-session losing streak on Monday as gains in power, metal and auto stocks offset losses in banking counters.
After opening 185 points higher, the BSE Sensex was gripped by early volatility and swung about 386 points during the session. The 30-share index finally settled 173.44 points or 0.46 per cent higher at 38,050.78.
Likewise, the NSE Nifty ended 68.70 points or 0.61 per cent up at 11,247.10.
On the Sensex chart, NTPC, Bajaj Auto, Tech Mahindra, ONGC and Maruti were among the major gainers, climbing up to 7.92 per cent.
On the other hand, SBI, Bharti Airtel, RIL, Sun Pharma and ICICI Bank and HDFC Bank ended with losses.
Analysts, meanwhile, said concerns over rising coronavirus cases around the globe will continue to weigh on investor sentiment.
India's total COVID-19 cases neared 26.5 lakh and the death toll from the infection climbed past 50,000-mark, official data showed.
Globally, the number of cases surpassed 2.16 crore and deaths topped 7.74 lakh.
Japanese stocks sank while other global markets and US futures gained on Monday after Japan reported a record economic contraction amid the coronavirus pandemic.
The Nikkei 225 in Tokyo fell 0.8% to 23,096.75 after data showed the world's third-largest economy shrank 27.8% from a year earlier in the three months ending in June. That was bigger than the deepest decline during 2008-09 financial crisis.
"The road ahead looks choppy as a resurgence in Covid cases will weigh on domestic and overseas spending," said Stefan Angrick of Oxford Economics in a report.
In early trading, the FTSE 100 in London gained 0.1% to 6,097.97. The DAX in Frankfurt was up 0.1% at 12,913.62 and France's CAC 40 added less than 0.1% to 4,964.88.
On Wall Street, futures for the benchmark S&P 500 Index and for the Dow Jones Industrial Average were up 0.3%.
The S&P 500 ended last week little changed. The index declined less than 0.1% while the Dow gained 0.1%. The The Nasdaq composite dipped 0.2%.
In Asia, the Shanghai Composite Index rose 2.3% to 3,436.80 and Hong Kong's Hang Seng gained 0.7% to 25,347.34. South Korean markets were closed for a holiday.
The S&P-ASX 200 in Sydney shed 0.8% to 6,076.40 while India's Sensex advanced 0.3% to 37,994.08. New Zealand advanced while Singapore and Bangkok declined.
Bangkok's main index lost 0.5% after Thailand reported its economy shrank 12.2% from a year earlier in the quarter ending in June. That was its worst performance since 1998 during the Asian financial crisis.
Investors in Asia were looking ahead to central bank meetings this week in China, Indonesia and the Philippines, with few other market-moving events insight.
In the United States, economists say consumer spending could be under more pressure after government aid including additional $600 weekly unemployment benefits expired. Investors are counting on Washington for another economic lifeline, but legislators are far apart on a possible package.
In energy markets, benchmark US crude gained 20 cents to $42.21 per barrel in electronic trading on the New York Mercantile Exchange.
The contract slipped 23 cents on Friday to settle at $42.01. Brent crude, the standard for international oil prices, added 17 cents to $44.97 per barrel in London. It 16 cents the previous session to $44.80.
The dollar declined to 106.47 yen from Friday's 106.59 yen. The euro gained to $1.1835 from $1.1843.