Benchmark indices ended the day higher after moving in a tight range through the day. Markets rallied in the last 1 hour of trade after European cues were better.
The Sensex ended the day higher by 129 points, while the Nifty rallied 39 points in trade.
Shares in Tata Motors was in the limelight after the company's JLR US sales was up 8 percent for the month of May 2016.
Midcap stocks were once again in the limelight with Engineers India being the top gainer in trade.
Shares in Rolta India were down 5 per cent after S&P lowered the company's credit rating.
Nifty stocks that added pressure to the index were Wipro, ITC, Lupin and Sun Pharma.
Jyothy Labs saw some buying support after reports that Henkel AG might invest in the company.
Meanwhile, markets across Asia ended the day higher, while most of Europe was trading with gains.
The rupee was last seen trading at Rs 67.25 to the US dollar.