Maruti Suzuki was top loser in the Nifty 50 basket of shares.

The S&P BSE Sensex and NSE Nifty 50 indices rebounded after falling the most since July 8 in the previous session led by a rally in banking, metal and financial services shares. The Sensex rose as much as 367 points from day's lowest level and the Nifty 50 Index moved above its important psychological level of 10,850. Earlier in the day, Sensex and Nifty traded on a subdued note and switched direction at least 14 times before rising to intraday highs in the afternoon deals paced by gains in HDFC Bank, ICICI Bank, Infosys and State Bank of India. (Also Read: Highlights of Today's Session of Sensex, Nifty)

The S&P BSE Sensex ended 162 points or 0.4 per cent higher at 36,725 and the Nifty 50 index climbed 47 points or 0.4 per cent to shut shop at 10,845.

"Nifty witnessed significant selling pressure post expiry of August series. Multiple reversal attempts have failed and currently we believe the short term structure continues to remains weak. We expect the index to face resistance around 10, on the downside 10,600 levels can be tested," says Sahaj Agarwal, head of derivatives at Kotak Securities.

Six of 11 sector gauges compiled by National stock Exchange ended higher led by the Nifty Metal index's 1.7 per cent gain. Nifty Bank, Private Bank, PSU Bank and Financial Services indices also advanced in the range of 0.6-1 per cent each.

On the other hand, Nifty Auto index was top loser, down 1.8 per cent dragged by weakness in Maruti Suzuki and Tata Motors.

Broader markets were broadly in-line with their larger peers as the Nifty 500 index rose 0.3 per cent.

Tata Steel was top gainer in the Nifty 50 basket of shares, the stock rose nearly 3 per cent to close at Rs 341. Bharat Petroleum, Indian Oil, Dr. Reddy's Labs, JSW Steel, Bharti Airtel, State Bank of India, Vedanta, Hindalco and UPL were also among the gainers.

On the flipside, Maruti Suzuki was top loser in the Nifty 50. The stock fell 4 per cent to close at Rs 5,805 after the company informed exchanges that it would close its plants at Manesar and Gurugram for two days.

Sun Pharma, Britannial Industries, Tata Motors, Titan, Asian Paints, IndusInd Bank and Mahindra & Mahindra were also among the losers.