The Sensex ended the day higher by 56 points (provisional), while the Nifty rallied 22 points in trade. Among the top gainers in trade were the banking stocks which jumped following the RBI decision to reduce the marginal standing facility.
Among the star performers from the banking space was Yes Bank which rallied 4%, while other banking gainers were IndusInd Bank, ICICI Bank and Bank of Baroda.
Among the other Nifty stocks that rallied in trade were DLF, Tata Power and ITC.
Larsen and Toubro also gained ground in trade after the company's construction division bagged a few orders.
Pharma major Wockhardt was locked at the upper end of the circuit filter for a second day in a row. Other pharma stocks remained subdued in trade with Lupin, Ranbaxy and Cipla ending the day flat.
Cement stocks, however, ended the day higher with ACC and Ultratech among the gainers.
Mid cap stocks which had a stellar run on Monday ended the day flat. Jubilant Foods and United Phosphorus were among the top losers from the mid cap space.
IT stocks had a mixed day in trade today with Tata Consultancy services losing ground, while Wipro and Infosys ended the day with marginal gains.
Meanwhile, markets in Asia ended the day with gains on the back of buying support. The Jakarta Composite and the Shanghai Composite were the among the best performing markets in Asia today.