The Sensex ended the day higher by 110 points, while the Nifty rallied 31 points in trade.
NTPC, however, did not have a great day in trade with the stock crashing 11 per cent after the Central Electricity Regulatory Commission announced its tariff order, which investors saw as unfavourable to NTPC.
Another Power major, Tata Power, however rallied after CERC allowed the company to raise tariffs and receive compensation to make up for losses incurred at its flagship Mundra plant in Gujarat.
Other Nifty stocks that gained in trade were L&T and Axis Bank. Software stocks ended the day weak with HCL, TCS and Infosys among the losers. In fact, TCS ended the day with losses of more than one per cent.
Shares in pharma Pfizer major rallied 10 per cent, after the company said that a unit of its parent Pfizer Inc will buy a near 61 per cent stake from two other units after an internal restructuring.
Mid cap stocks also had a good day in trade with SUN TV network continuing to rally again with the stock ending four per cent higher. Other mid cap stocks that gained ground were Voltas and Hexaware.
Real estate stocks did not have a good day in trade with stocks like Unitech and Anant Raj declining. trade.
Meanwhile, Asian markets ended the day lower led by sharp losses in the Shanghai Composite and the Hong Kong's Hang Sang.