The BSE Sensex closed the higher by 21 points, while the Nifty closed the day higher by 4.45 points at 4990 points.
Firm closings in the Asian markets, did not improve sentiments much, as Europe began to drift lower after 3.00 PM IST. Earlier, strong rumours of the Chinese government likely to consider a stimulus also helped fuel a rally across the global markets.
Among the stocks that gained in trade today were Cairn India, HCL Tech, Maruti Suzuki and Ranbaxy Laboratories. Shares of ITC, Bharti Airtel and DLF were down marginally.
Domestically, all eyes are on the GDP data to be released on May 31, 2012 by the Central Statistical Office. GDP data for the fourth quarter is expected at around 6%. Any disappointment on this front could lead to a sell off in stocks.
Globally, the markets are likely to monitor the developments in Spain and the results of the elections in Greece which are slated for June 17, 2012. A victory for pro bail out parties in Greece could spark a relief rally across global markets.