Benchmark indices ended the day higher, after trading lower for most of the day, after a rally in European markets pushed indices higher.
Banking stocks, which were trading lower for most of the day, saw a smart rebound in trade. The Sensex ended the day higher by 131 points, while the Nifty ended higher by 31 points. Leading the set of gainers were heavyweight stocks like Infosys and ICICI Bank.
Jewellery stocks came in for a severe drubbing after the government refused to take a fresh look at excise. Rajesh Exports dropped 10 per cent, TBZ dropped 2 per cent, while P C Jeweller ended the day lower by 3 per cent.
Banking stocks saw a mixed trading session with PNB losing ground and SBI losing ground, while Kotak and IndusInd gained ground.
Nifty stocks that lost ground in trade were from the metal space including the likes of Hindalco and Vedanta.
Midcap stocks, however, ended the day with losses with the index seeing a half per cent cut. DHFL lost 3 per cent, while Jindal Steel lost 1 per cent in trade.
Meanwhile, markets across Europe were trading with gains. All eyes are on the US Fed decision on interest rates and its statement, which would be known later today.