On the global front, Asian markets ended strong barring Jakarta Composite and Taiwan. European markets are trading mixed.
Top gainers were Wipro, Satyam, TCS and Dr Reddy's Labs while losers - BHEL, Maruti, Reliance Energy, Suzlon and ABB.
Sensex closed up 82.15 points or 0.52% at 15832.55, and the Nifty up 17.40 points or 0.37% at 4771.60.
About 1393 shares have advanced, 1599 shares declined, and 77 shares are unchanged.
The BSE Midcap Index ended at 6,387.23 down 0.4%.
The BSE Smallcap Index ended at 7,840.29 down 0.9%.
The BSE Bankex closed ended flat at 7,820.62. IOB, ICICI Bank, Centurion bank, Axis closed in green.
The BSE Capital Goods Index closed at 13,214.73 down 2%. Suzlon, Reliance Infra, Siemens, Triveni Engineering closed lower.
The BSE Auto Index closed at 4,490.94 down 1%. Apollo Tyres, Escorts, Ashok Leyland, Hind Motors closed lower.
The BSE Metal Index closed at 13,588.76 up 0.5%. SAIL, JSW Steel, Jindal Steel, Jindal Stainless, Hind Zinc closed lower
The BSE FMCG Index closed up 1% at 2,344.68. Colgate, ITC, Nestle, Dabur ended higher.
BSE Oil and Gas Index closed at 10,531.88 up 2%. BPCL, HPCL, IOC, Reliance Natura, GAIL ended higher.
The BSE IT Index was at 3,764.91 up 3%. HCL, Infosys, Tech mahindra, TCS, Tech Mahindra closed higher.
The NSE cash turnover was at Rs 12401.12 crore and the NSE F&O turnover was at Rs 32513.16 crore. The BSE cash turnover was Rs 4972.01 crore. Total market wide turnover was at Rs 49886.29 crore.