Indian stock markets recovered on Thursday, after seven sessions of decline. The overall sentiment, however, was cautious before the current series of derivatives – contracts between buyers and sellers – expire on the last working Thursday of every month.

The Bombay Stock Exchange Sensex closed 122.67 points up at 31282.48. The National Stock Exchange Nifty ended higher by 33.2 points at 9768.95.

Kotak bank, Dr Reddy’s Laboratories, Coal India, Maruti Suzuki India and Cipla were the top gainers on the Sensex. Asian Paints, Reliance Industries, Wipro, Bharti Airtel and Tata Motors performed the worst.

On the Nifty, shares of ACC Limited, Dr Reddy’s Laboratories, Kotak bank, Hindalco Industries and Bharti Infratel performed well, and those of Asian Paints, Bosch, Aurobindo Pharma, Bharti Airtel and Reliance Industries made losses.

Shares of Dr Reddy’s Laboratories performed well after the company said it had received an establishment information report from the US Food and Drug Administration for its Srikakulam plant in Andhra Pradesh.

IT stocks erased gains made in early trade after reports that the US may review outsourcing contacts given to foreign companies. Shares of TCS and Wipro were down 0.47% and 1.18%.

The rupee continued its slide and was at 65.76 against the US dollar. The home currency was dented by expectations of further rate hikes by the United States Federal Reserve, rising crude oil prices and talk of relaxation in fiscal deficit to boost the slowing economy.