Benchmark indices ended the day higher on the last day of the Sept F&O expiry after European markets staged a good recovery in trade.
The Sensex ended the day with gains of 42 points, while the Nifty was up 22 points in trade. Leading the set of gainers was Infosys which was up a huge 2.71 per cent in trade.
Shares in Motherson Sumi, which were badly hammered following the Volkswagen Diesel Engine emission scandal, gained ground sharply on short covering.
Banking stocks exhibited weakness in trade with ICICI Bank and HDFC Bank among the losers. Lupin was among the top Nifty gainers after Credit Suisse upgraded the stock to a buy. Tata Motors which has been constantly dropping following worries over demand from China ended the day lower on selling pressure.
The stock was very close to its 52-week low seen in August 2015. Elder Pharma jumped a huge 12 per cent in trade after reports that company was to consider proposal for sale of step down overseas arms later this month.
Maruti Suzuki saw good buying support after the company said that auto gear vehicles sales had crossed the 50,000 mark.
Meanwhile, markets across Asia ended the day lower, while Europe was trading with marginal gains. Indian markets would be closed on Friday for a local holiday.