On the other hand, sell-off was witnessed in Technology, FMCG, auto and pharma stocks.
At the closing session Sensex was up up 47 points at 17,172 and Nifty surged 18 points to 5,130.
However, the bechmark indices showed consolidation for the second consecutive day.
In the telecom space, Idea Cellular surged 4.15pc, coupled with the company decsion to seek increase borrowing limit to Rs 25,000 crore at AGM on December 21 from of shareholders.
Bharti Airtel gained 3.43pc and Reliance Communications rose 2.15pc. MTNL gained 1.41pc and Tata Communications was up 1.19pc.
Among the metal stocks, SAIL, Hindustan Zinc and Jindal Steel were up 1 to 1.5pc. Hindalco, Tata Steel and Sterlite Industries gained 0.5-0.9pc.
India's food price index rose 19.05pc in the 12 months to November 28. The price of food articles was up 0.7pc from last week
The global markets showed mixed trades.
European market traded in green while the US index futures at the time of closing of Indian equities traded on a flat note.
Asian market too ended in mixed trade.
Sensex up 62 pts; Reliance Communication gains
Uptrend in the shares of telecom, metal, capital goods, power, select oil & gas, realty and banking stocks helped nifty to gain more strenghed hold 5,100 mark.
At 13:45 pm, Sensex was trading at 17,187, up 62 points and the Nifty was at 5,133, up 21 points.
Mahindra Satyam was up 6pc and Tech Mahindra surged 2.5 pc.
Micro Inks was locked at 20pc upper circuit.
In the largecaps, Bharti Airtel, BHEL, Reliance Communications, Hindalco, Jaiprakash Associates, Idea Cellular and SAIL rose 1.4 to 3.6pc while Sun Pharma, Hero Honda, Maruti Suzuki, HDFC Bank, HUL, BPCL and Cipla fell 1 to 1.5pc.
Nagreeka Export, APW President, Makers Labs and Zenith Computer surged 20pc each.and Four Soft gained 14.23% and Grindwell Norton up 11.51pc were the top gainers.
In the midcap space, Atlas Copco, IndusInd Bank, HT Media, Thomas Cook and Nirma were up 4-5.4pc, while Nagarjuna Construction, Info Edge, HOEC, Voltas and Shree Renuka fell 2 to 4pc.
In the smallcap space, Dhanuka Agri, Gokul Refoils and MIC Electronics were up 10 to 17pc.
However, Sanghi Industries, Maharashtra Elektrosmelt, Elpro Int, Manaksia and Nucleus Software fell 3 to 7pc.
Sensex bounces back; telecom, metal gain
Buying in telecom, capital goods, metal, power and select realty stocks helped Sensex to bounce back. However, selling in FMCG, technology, pharma and select auto stocks capped the gains to major extent.
At 12: 24 pm Sensex was trading at 17,149, up 23 points and the Nifty was at 5,121, up 9 points.
RIL and SBI traded on a flat note.
In the global cues, select Asian markets were also trading low, Shanghai was up 0.23pc and Kospi rose 1.14pc.
However, Nikkei and Taiwan were down 1.5pc each. Straits Times was down 0.7pc and Hang Seng down just 0.2pc.
Sensex opens on a flat note; RIL, HDFC slip
Sensex opened on a flat note and continued consolidating for the second consecutive day.
At 9:56 am, the Sensex fell 45 points to 17,079 and the Nifty down 13 points to 5,098.
Heavyweight Reliance Industries, HDFC Bank, L&T, Infosys and HUL slipped while SAIL, BHEL and ICICI Bank gained.
The fronline losers were Reliance Power, Reliance Communications, Cairn India, Unitech, HDFC Bank, HDFC, Jindal Steel & Power, Tata Power, Reliance Industries, Infosys, DLF, NTPC and Axis Bank.
Buying interest were seen in BPCL, Idea Cellular, Maruti Suzuki, Hindalco, SAIL, M&M, Tata Steel, Wipro and GAIL.
In the midcap space, Mahindra Satyam surged 7.7pc after settling a long-drawn legal case with Upaid for USD 70 million. Tech Mahindra gained 3.5pc.
Global cues were weak with Asian markets trading lower. Taiwan Weighted slipped 1.7pc, Hang Seng, Nikkei, Kospi and Straits Times were down 0.7 to 0.9pc, Shanghai and Jakarta were flat in trade.