The Sensex ended the day higher by 173 points, while the Nifty closed the day higher by 53 points at 7415. Among the gainers from the Nifty were clearly the metal stocks which saw spectacular rally in trade. Tata Steel and Sesa Sterlite both gained more than as 6 per cent in trade, while Coal India was up 5 per cent and Jindal Steel gained 3 per cent.
Other notable gainers from the Nifty were NTPC, Ultratech Cement and Bharat Heavy Electricals. Shares in Zee Entertainment were in demand after the RBI said that FIIS could buy 100 per cent in the company.
Lanco Infratech was in the limelight after reports that the company was ready to sell power plans to NTPC to pare debt.
Stocks that lost ground from the Nifty were Dr Reddy's Labs, ITC, Hindustan Unilever and Wipro. PSU banking stocks saw some selling pressure following the RBI's credit policy. Among the notable losers were Oriental Bank, Allahabad Bank and Bank of India.
Bharti Airtel which had rallied in trade earlier on hopes that it would sell tower assets in Africa to cut debts ended the day marginally lower.
Meanwhile, markets in Europe were trading marginally lower with the German DAX, the French CAC and the UK's FTSE all down.