Equity benchmark indices Sensex and Nifty found firmer ground on Monday after facing a massive drubbing in the past five trading sessions, propelled by bargain hunting in energy, banking and metal stocks.

However, escalating geopolitical tensions and unrelenting foreign fund outflows capped the sharp gains, traders said.

The 30-share BSE Sensex climbed 301.93 points, or 0.36 per cent, to settle at 83,878.17. During the morning trade, it tumbled 715.17 points, or 0.85 per cent, to 82,861.07, breaching the 83,000 level.

The 50-share NSE Nifty edged higher by 106.95 points, or 0.42 per cent, to 25,790.25. The benchmark tanked 209.9 points, or 0.81 per cent, to 25,473.40 in morning trade.

From the 30-Sensex firms, Tata Steel, Asian Paints, Trent, State Bank of India, Hindustan Unilever, UltraTech Cement, ICICI Bank and Bharti Airtel were among the gainers.

On the other hand, Infosys, Bajaj Finance, Bharat Electronics, Larsen & Toubro and HDFC Bank were the laggards.

Signalling an intent to rebuild strained ties, President Donald Trump's new ambassador to India on Monday said that no country is as essential as India to the United States, and asserted that both sides are actively engaged to firm up a trade deal.

In his arrival speech, Sergio Gor also announced an invitation to New Delhi for a US-led strategic alliance, known as 'Pax Silica' on critical minerals and artificial intelligence.

The comments made just hours after he began work are seen as a welcome outreach by the Trump administration, which has mounted pressure on India in recent months over tariffs and H1B visas.

"The Indian market rebounded from the day’s lows as investor sentiment improved following favourable remarks on the trade deal by the US Ambassador ahead of the next round of negotiations.

"This positive undertone provided a lift to overall market sentiment. Value buying was also evident in consumer and banking stocks, as investors sought opportunities after recent corrections, supported by expectations of stronger Q3 earnings and improving demand," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Foreign institutional investors offloaded equities worth Rs 3,769.31 crore on Friday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 5,595.84 crore, according to exchange data.

In the past five trading days, the BSE benchmark declined 2,185.77 points or 2.54 per cent, and the Nifty tumbled 645.25 points or 2.45 per cent.

In Asian markets, South Korea's Kospi index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended higher.

Markets in Europe were trading on a mixed note.

US markets ended in positive territory on Friday.

Brent crude, the global oil benchmark, dipped 0.27 per cent to USD 63.17 per barrel.

On Friday, the Sensex tumbled 604.72 points or 0.72 per cent to sink below the 84,000-level and settle at 83,576.24. The Nifty dropped 193.55 points or 0.75 per cent to 25,683.30.