The Sensex ended the day higher by 85 points, while the Nifty gained 35.70 points. Among the shares that rallied in trade today were high beta names from the metal space, realty and banking names.
Shares of Jaiprakash Associates surged more than 5%, while Bank of Baroda, IDFC and Punjab National Bank were amongst the other gainers from the Nifty.
Heavyweights including ITC, Hindustan Unilever and HDFC rallied smartly, while Reliance Industries remained subdued.
Shares of Tata Power dropped after the company posted a consolidated net loss of Rs 83.8 crore in Q2FY13.
Shares of Bharti Airtel too ended the day lower after the company reported a drop in net profits.
PSU banking stocks were in demand on buying at lower levels. Shares of IDBI Bank, IOB, Union Bank and Canara Bank surged as investors engaged in value buying.
Meanwhile, markets in Europe ended the day higher, while Asia apart from the indices in Japan and China closed higher.
Markets are expected to continue to maintain an upward momentum and would now look to how the US would resolve its fiscal cliff.