“I am not underplaying the importance of Evergrande in the Chinese financial market. It is the highest leveraged property company in the world, never mind China. But I do not think that the spread from that is going to affect the UK, France or the United States.”

The Nifty Bank index closed 0.24 per cent up at 37235.85.

Analysts said the recovery from near a short-term moving average was encouraging, but a few technical indicators are still negative, suggesting that the index may be vulnerable to selloffs.

Buying was visible on declines and Nifty50 regained strength after a halt of last two sessions. It formed a Bullish Hammer kind of candle on the daily scale and closed with a gain of around 165 points.

The state Assembly passed an amendment to the Stamp Act, 1957, slashing the stamp duty payable on flats priced Rs 35-45 lakh to 3 per cent.

MobiKwik Chairperson, co-founder and COO Upasana Taku said the number of equity shares that would arise from the full exercise of options granted implies 7 per cent of the fully diluted outstanding shares.

A total of 6,982 shares changed hands on the counter till 02:12PM (IST).

The domestically focussed mid-cap index rose 0.9%, with travel stocks being among the top gainers.

The Nikkei share average dropped 2.17% to close at 29,839.71, marking its biggest fall since June 21. The broader Topix slipped 1.7% to 2,064.55.

Energy stocks added nearly 1.5% - their best session in a week - as oil prices jumped on signs of U.S. supply tightness.