Analysts said the recovery from near a short-term moving average was encouraging, but a few technical indicators are still negative, suggesting that the index may be vulnerable to selloffs.

Buying was visible on declines and Nifty50 regained strength after a halt of last two sessions. It formed a Bullish Hammer kind of candle on the daily scale and closed with a gain of around 165 points.

The state Assembly passed an amendment to the Stamp Act, 1957, slashing the stamp duty payable on flats priced Rs 35-45 lakh to 3 per cent.

MobiKwik Chairperson, co-founder and COO Upasana Taku said the number of equity shares that would arise from the full exercise of options granted implies 7 per cent of the fully diluted outstanding shares.

A total of 6,982 shares changed hands on the counter till 02:12PM (IST).

The domestically focussed mid-cap index rose 0.9%, with travel stocks being among the top gainers.

The Nikkei share average dropped 2.17% to close at 29,839.71, marking its biggest fall since June 21. The broader Topix slipped 1.7% to 2,064.55.

Energy stocks added nearly 1.5% - their best session in a week - as oil prices jumped on signs of U.S. supply tightness.

While predominantly a developer, Evergrande -- which employs 200,000 people, has a presence in more than 280 cities and claims to indirectly generate 3.8 million Chinese jobs -- has been on a buying spree for more than a decade.

The Relative Strength Index of the stock stood at 62.38 on Tuesday.