The Sensex ended the day higher by 138 points, while the Nifty closed the day higher by 37 points.
Leading the set of gainers from the Nifty were Asian Paints, DLF and Lupin. Banking stocks came in for some selling pressure with IndusInd Bank, ICICI Bank and PSU banking stocks like Allahabad Bank, Punjab National Bank and Oriental Bank dropping in trade.
Shares in Phoenix Mills rallied almost 5 per cent taking the gains in the stock this year to excess of 50 per cent.
Another real estate stock that gained ground in trade was Prestige Real Estate which rallied after reports that the company had acquired a prime property in South Bangalore from Siemens.
Technology stocks had a mixed session in trade with TCS and Wipro declining, while Infosys gained ground in trade.
Shares in Videocon Industries gained ground after the company said that Videocon d2h will bring a proposed Rs 700 crore IPO this fiscal.
Telecom major Bharti Airtel also ended the day higher after RBI said that FIIs can now invest up to 74 percent in the company.
Mid cap stocks also had a good day in trade with Petronet LNG and HPCL among the gainers. CESC rallied a huge 6 per cent on buying interest in the stock.
Meanwhile, markets in Europe gained ground after the Dow Jones hit a record high of 17,000 points in strong payroll data.