Indices traded in the green for most of the day following firm global cues. Capital Goods stocks were back in the limelight with several of the stocks rallying.
In today's trade, Suzlon Energy rallied eight per cent, while IL&FS Transportation Networks rose four per cent and Bharat Heavy Electricals gained almost 3.5 per cent and Jaiprakash ended almost eight per cent higher.
Investor frenzy in these stocks was largely on hopes that there would be some recovery in the capital goods sector once the investment cycle turns.
Wockhardt dropped for the second day in a row following the US FDA import alert on the company's Chikalthana plant.
Top Nifty gainers in trade apart from the capital good stocks were IDFC, Power Grid Corporation, HPCL, DLF and Dr Reddy's Labs.
Banking stocks also had a good day in trade with notable gainers from the space being Yes Bank, Punjab National Bank and Canara Bank.
There were only a few Nifty stocks that lost ground today including Cairn India and Cipla.
Meanwhile, markets in Asia ended the day mostly higher led by strong gains in the Japanese Nikkei and the Shanghai Composite. This was largely on the back of robust overnight closing in the US, wherein the Dow Jones hit a new record high.