The BSE benchmark Sensex recovered by 19 points to trade at 21,052.87 in late morning trade on select buying mainly in consumer durables, capital goods, tech and metal sectors in view of last day of futures and options October contract on Wednesday.
The Sensex resumed lower at 21,000.60 and dropped to 20,991.98 on initial selling due to lower global cues.
However, it recovered afterwards to 21,066.41 before quoting at 21,052.87 at 1030 hrs, showing a gain of 18.90 points or 0.09 per cent from its last close on persistent foreign capital inflows.
The NSE 50-share Nifty was quoted steady at 6,252.10 at 1030 hrs.
Major gainers were Bharti Airtel (2.88 per cent), Wipro (1.63 per cent), Larsen (1.29 per cent), Reliance Ind (1.16 per cent) and Tata Motors (1.15 per cent).
Foreign institutional investors (FIIs) continued their buying spree by investing net Rs 1016.77 crore yesterday as per provisional data from the stock exchanges.
Asian stocks fell in their early trade after the Federal Reserve fuelled bets it may start paring stimulus sooner than previously forecast.
Key benchmark indices in China, Japan, Hong Kong, Singapore, and South Korea shed 0.14 per cent to 1.24 per cent while Taiwan's TWSE rose 0.01 per cent.