The Sensex ended the day higher by 33 points (provisional), while the Nifty gained 12 points in trade. Gainers in trade from the Nifty were Coal India which jumped 4 per cent and Gas Authority of India.
In fact, PSU stocks were in the limelight on hopes of interim dividend from these set of companies. Stocks that rallied from the sector were NMDC, Syndicate Bank, and IDBI Bank. Larsen and Toubro which had rallied substantially in trade on Tuesday lost ground and was among the top loser from the Nifty.
Infosys ended the day soft for a second day in a row ahead of the company's results to be declared on Friday. DLF, Wipro and Bharat Heavy Electricals were the other losers in trade.
Maruti Suzuki which hit a 52-week high on Tuesday shed gains on profit booking.
PSU banking stocks were the stars in trade with Bank of India gaining 5 per cent, Syndicate Bank rallying eight per cent and Allahabad Bank also gaining 8 per cent. Most of the PSU banking stocks climbed on meeting of their respective boards to declare interim dividend.
Shares of mining major NMDC rallied after the company said that its production had increased substantially for the quarter ending Dec 31, 2013.
Meanwhile, Asian shares had a solid session in trade with the Japanese Nikkei gaining 2 per cent, while the Hang Sang gained 1.25 per cent.