The BSE Sensex spurted 130.00 points to end at 35,980.93, while the broader NSE Nifty advanced 30.35 points to 10,802.15.
Unai Emery's side were heading for a demoralising defeat, three days after losing meekly to Sheffield United in the Premier League, but substitute Pepe's late intervention kept the Gunners top of Group F with a maximum nine points.
Fans protested against Monday night football in the Bundesliga as Eintracht Frankfurt beat visiting RB Leipzig 2-1, delaying the start of both halves of the match, the second by throwing hundreds of tennis balls onto the pitch.
The NSE Nifty too ended 58.60 points, or 0.54 per cent, higher at 10,967.30 after shuttling between 10,985.15 and 10,928 during the session.
IMAGES from the Bundesliga matches played across Germany on Tuesday.
The indices closed with losses for the week, with the Sensex declining 476.14 points, and the broader NSE Nifty falling 155.45 points during the period.
The 24-year-old, who finished 72nd in the giant slalom at the Sochi Winter Olympics four years ago, needs a score of 140 points or below in five races to qualify for the Winter Games in Pyeongchang from February 9 to 29.
Reflecting the bearish mood, all sectoral indices, led by metal, teck and healthcare, ended in the negative zone.
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Sun Pharma stole the show in the Sensex pack, spurting 3.91 per cent, followed by M&M at 2.87 per cent.
NSE Nifty, after shuttling between 10,809.60 and 10,725.90, finished 30.95 points, or 0.29 per cent lower at 10,741.10.
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The NSE Nifty ended 89.40 points, or 0.83 per cent, lower at 10,710.45.
The 30-share Sensex stayed in the green for the better part of the session and hit the day's high of 38,297.70 as buying pace gathered momentum towards the fag-end.
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The broader NSE Nifty scaled a high of 10,856.55 before closing up by 55.90 points, or 0.52 per cent
Geo-political concerns over death of a Saudi journalist, Brexit and likely breach in Italy's budget also kept investors cautious.
The Sensex swung over 660 points both ways on alternate bouts of selling and buying before closing the day higher by 97.39 points, or 0.28 per cent.
In the Sensex pack, M&M was the biggest loser, tumbling by 6.66 per cent, followed by TCS dropping 4.14 per cent.
The fall came on the back of a massive selloff in NBFCs, led by DHFL which skidded over 50 per cent on fears of a liquidity crisis.
In the Sensex pack, ICICI Bank emerged as the top gainer by rising 0.97 per cent, while Tata Steel advanced 0.92 per cent.
The broader NSE Nifty too reclaimed the key 11,500-mark. It touched a high of 11,562.25, before finally settling at 11,536.90, showing a gain of 59.95 points, or 0.52 per cent.
Other than ITC, other laggards include PowerGrid, Infosys, M&M, NTPC, SBI, HDFC, Kotak Bank, HDFC Bank, TCS, Hero MotoCorp, Coal India, ONGC, RIL, Asian Paint, IndusInd Bank, ICICI Bank, Maruti Suzuki, Bajaj Auto, Tata Motors, Bharti Airtel and Axis Bank.
The Sensex has now lost 878.32 points in six sessions -- its longest string of losses in six months.
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Coal India fell the most by 2.58 per cent among Sensex scrips, dragging the index into the negative zone.
Strong gains in metal, energy, auto and power shares lifted the key indices to new highs.
The broader NSE Nifty dipped below the 10,200-mark to hit a low of 10,180.25 before ending at 10,195.15, down by 165 points, or 1.59 per cent.
The Portuguese forward then fired in the penalty in the sixth minute of stoppage time.
Yes Bank was the top gainer in the Sensex pack, surging 3.76 per cent, followed by SBI at 3.18 per cent.
Sentiment took a dramatic change particularly in the last one hour of trading with the lower opening of the European markets and investors booking profits in broader markets at record levels
ICICI Bank was the top gainer in the Sensex pack, surging 4.64 per cent, followed by Axis Bank at 3.86 per cent and SBI 2.53 per cent.
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It was the second straight week of gains for the benchmarks.
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The 49-year-old had a hugely successful spell coaching former world number one Novak Djokovic from 2013 to 2016, a period in which the Serb won six of his 12 Grand Slam titles.
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