The Sensex closed the day higher by 108 points (provisional), while the Nifty rallied 38 points in trade. GAIL was the top Nifty winner in trade along with Sun Pharma, Mahindra and Mahindra and Wipro joining the list. Dr Reddy's hit a record high after the company launched a product in the US and investors were hopeful of growing prospects from the company's business in the US.
PSU undertaking, Bharat Heavy Electricals also rallied after reports that the LIC would pick a stake in the company.
Bharti Airtel also ended higher after reports that the company had hiked prepaid call rates. Metal stocks did not have a very good session in trade with notable losers being Sesa Sterlite, NMDC and Tata Steel.
Banking mostly ended higher, though select PSU stocks were down in trade. Among the stocks that lost ground were Canara Bank and Oriental Bank of Commerce.
IT stocks had a mixed day in trade with TCS and Infosys ending subdued, while Wipro gained another two per cent in trade.
Mid cap stocks ended the day lower with declines being led by stocks like Reliance Capital, Sun TV Network and Jubilant Foodworks fell.
Meanwhile, markets across Asia mostly ended higher led by gains in the Shanghai Composite and the Hang Sang.