The Nifty ended the day higher by 11 points, while the Sensex gained 43 points. Among the top gainers in trade were the high beta names including those in the metal and real estate space.
Shares of India's largest real estate player surged more than 4%, while metal stocks like Hindalco, and Sesa Goa also gained 4%.
Other Nifty gainers in trade were Punjab National Bank, Tata Steel, Tata Motors, Bank of Baroda, BPCL and SBI.
Technology stocks, however, had a bad day with the likes of Infosys, Wipro, HCL Tech and TCS amongst the losers. IT stocks dropped after Cognizant sounded a warning on revenue growth.
Nifty stocks that lost ground in trade were Bharti Airtel, Bajaj Auto, HDFC, Coal India, Jindal Steel and Tata Power.
Banking stocks were amongst the gainers in trade with HDFC Bank, State Bank of India and SBI gaining.
Pharma stocks, too, saw buying interest with Cipla and Ranbaxy closing higher. Heavyweights, ITC and Reliance Industries were also amongst the gainers.
Among non index stocks Tree House Education gained more than 9%, following reports of allotments to Aditya Birla Private Equity Sunrise. Meanwhile, markets in Europe were trading higher, while most of Asia closed up.
Indian markets are expected to remain volatile on Thursday, after the outcome to the debate on FDI is made known.