The Sensex ended 0.5 percent higher, recovering from new July lows made intraday, led by gains in private lenders such as ICICI Bank, on hopes of better-than-expected June quarter earnings.
ICICI Bank rose 1.7 percent, while HDFC Bank rose 0.7 percent.
The Sensex provisionally rose 0.47 percent to 17,185.09 points. The Nifty rose 0.47 percent to end at 5,217.25 points.