After falling as much as 0.98% to its lowest since May 19, the blue-chip index retreated to end 0.6% up. Base and precious metal miners, rose 0.9% and 0.2% respectively.

The domestically focused mid-cap index advanced 0.6%.

Morrisons surged 34.6% on hopes U.S. private equity firm Clayton, Dubilier & Rice (CD&R) might raise its proposed offer, despite its initial proposal being rejected.

Meanwhile, a spike in inflation, which surged past the Bank of England's target in May, further raised concerns among investors that the central bank could pull back its monetary support in a meeting due later this week.

However, the rate-setters look set to remain divided over whether to pull the plug on their 875 billion-pound ($1.2 trillion) government bond purchase programme.

"We're not going to see central banks be in a rush to pull the plug out on stimulus, we're still in a market where there's going to be a healthy amount of accommodation," said Edward Moya, senior analyst at Oanda.

"Investors right now are focusing on the prospects that we're still going to have robust economic growth. And even though the markets now are fully believing that we will see a tapering of asset purchases, that's still not going to happen most likely in the immediate future."

Industrials gained 1%, led by outsourcer Capita, which rose 9% after it said it was on track to post revenue growth for the first time in six years and agreed to sell its 51% stake in Axelos.

"The index was also supported by strength in the dollar against the pound, boosting the relative value of its constituents' U.S. revenues," said Russ Mould, investment director at AJ Bell in a note.

Dollar-earning consumer staples stocks, including British American Tobacco, Reckitt Benckiser Group,and Diageo Plc gained between 0.5% and 0.8%.

(Reporting by Shashank Nayar and Amal S in Bengaluru; editing by Uttaresh.V)

By Amal S