The mood also brightened after MSCI deferred inclusion of China A stocks to its benchmark indices, rather choosing to sort out regulatory issues, which triggered buying by foreign funds.

The 30-share index, which had lost 1,367.74 points in the previous six straight sessions due to RBI's cautious stance on inflation and revival, and the spectre of drought, recouped 236.54 points, or 0.89   percent, at 26,717.79.

Buying in stocks of realty, consumer durables, capital goods, healthcare and banking boosted trading sentiment. Also, the NSE Nifty pulled back 71 points, or 0.89 percent, at 8,093.40.

Brokers said value-based buying in blue-chips after recent losses amid a firming trend in other Asian markets helped.

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