The Sensex and the Nifty ended higher awaiting CPI and IIP data due later in the evening. The Sensex closed higher by 81 points, while the Nifty gained 21 points in trade.
ICICI Bank led gainers today with the stock jumping 3 per cent, whole other notable gainers were from the PSU space, including ONGC and Gas Authority of India.
Reliance Industries ended higher despite Delhi chief minister Arvind Kejriwal ordering an FIR filing against Reliance Industries chief Mukesh Ambani for alleged collusion in the hike in prices of natural gas from KG basin.
Railway stocks did not have a good day in trade, after the Interim Railway Budget disappointed with not many big ticket investment announcements. Railway linked stocks like Kalindee Rail, Texmaco and Titagarh Wagons all dropped in trade.
Coal India dropped ahead of its results to be declared later today. Tata Steel fell sharply by more than 4 per cent, after the company reported a poor set of numbers.
Other notable losers in trade were Dr Reddy's, ITC, Ranbaxy Labs, Hindalco and Maruti Suzuki. The Mid cap stocks ended the day lower with pressure coming in from stocks like CESC, JSW Steel and Unitech.
Meanwhile, markets across Asia rallied sharply led by gains in the Hong Kong's Hang Sang and the Japanese Nikkei.