Index heavyweights continue to be top losers with ICICI bank.
Recovery in bluechips and gains in European markets helped the rally.
The decline was led by index heavyweight Reliance Industries along with ITC and HDFC.
Top gainers from the Sensex pack are Infosys, Cipla, NTPC, ITC and Lupin
Auto stocks led the rally with Tata Motors, Hero MotoCorp and Maruti Suzuki leading the gains.
Auto and index heavyweights Reliance Industries and ITC were the top losers in early trades.
Capital goods shares continued to trade firm in late noon despite weak market trend on the back of encouraging core sector growth in February.
Short-covering and the propping up of net asset values have potential to boost frontline as well as second-rung names next week
Pharma shares extended losses after the government's ban on combination drugs.
Rate sensitive sectors were among the top gainers with Tata Motors and ICICI Bank leading the gains on the Sensex.
Bank shares were the top losers after sharp gains last week.
Rate sensitive sectors rallied the most led by banks while metals surged on rebound in commodity prices
The BSE Sensex was down 326 points at 23,277 and the Nifty was down 107 points at 7,056.
SBI, PNB, Bank of Baroda, Canara Bank, Dena Bank, Central Bank of India ended down 3%-12% each.
Financials were the top losers while oil shares also declined amid weak crude oil prices.
Benchmark share indices trimmed intra-day gains after global crude oil prices resumed their downward trajectory after sharp gains on Friday.
Financial shares were the top losers.
Metal shares were the top gainers with Hindalco up over 5%.
Index heavyweight RIL surged 3% to end above Rs 1,000 mark while IT majors were also the top gainers.