Indian shares fell sharply on Monday before ending the session off their day's lows.
The benchmark S&P BSE Sensex hit an intraday low of 57,084.91 before recovering significant ground to end the session down 360.95 points, or 0.62 percent, at 57,628.95, tracking recovery in European markets.
Similarly, the broader NSE Nifty index settled 111.65 points, or 0.65 percent, at 16,988.40, after having hit a low of 16,828.35 earlier in the session.
Underlying sentiment remained cautious amid concerns that a bigger crisis is brewing in the global financial system.
Risk aversion deepened despite global central banks announcing coordinated measures to provide dollar liquidity and UBS Group AG, Switzerland's largest banking group, agreeing to buy the crisis-hit Credit Suisse Group AG in a historic, government-brokered deal.
The rupee was slightly lower against the dollar and gold hovered near one-year highs while oil prices were down more than 2 percent to extend last week's losses on recession worries.
Market Analysis