Indian equities in the afternoon trade recouped their morning losses and ended considerably higher. At the close, Sensex ended with gains of 0.46 per cent or 376 points at 81,559.54, while the Nifty closed near 24,950 levels helped by gains in the FMCG, private banking and consumer durable stocks.

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Nonetheless, other sectors, including IT and metal saw losses and ended lower. IT stocks saw a drag after the brokerage firm CLSA cautioned on the valuations of the sector which is just 7 per cent away from the Covid levels.

From the Nifty pack, top gainerrs included stocks like HUL, Shriram Finance, ICICI Bank, ITC and Britannia, while losers included stocks like ONGC, Tech Mahindra, NTPC, BPCL and Hindalco.

Meanwhile, European indices posted recovery as investors anticipate the ECB to cut interest rate later in the week.