Sensex closed the session at 17,401.56, up 40.95 points.
Buying interest in Power, telecom, select banking and metal stocks, including heavyweight Reliance Industries helped the market to trade on a higher note throughout the day.
In power stocks, Reliance Power gained 4.87pc. Reliance Infrastructure, Suzlon Energy, NTPC, Power Grid Corp and Neyveli Lignite were up 1.2 to 2.7pc.
Reliance Power's first power plant Rosa in Uttar Pradesh of 1,200 megawatt (mw) which started in ahead of scheduled will have its first unit of of 300 mw by Jan 2010.
The entire unit is expected to run on full capacity by March 2012.
Meanwhile in Pharma stocks which went under pressure owing to NPPA (National Pharmaceutical Pricing Authority) comments announcing the payment of Rs 2,100 crore to top companies for overchraging.
Pharma stocks like Dr Reddys Labs, GSK Pharma and Cipla slipped over 3%. Glenmark and Sun Pharma slipped 1.5 to 2.5pc. Dishman Pharma and Biocon fell 0.5pc each.
However, revival of dedicated railway freight corridor set the railway stocks a buzz. Kalindee Rail Nirman surged 19.7pc, Titagarh Wagons was up 17pc and Texmaco was up 9pc. Kernex Microsystems and Stone India surged 5pc each.
Sensex trading at 17, 436 mark; reliance power up
At 1: 27 pm Sensex was trading at 17,436, up 75 points and the Nifty was at 5,202, up 24 points.
Continued buying interest in power, telecom, metal and select auto stocks made Sensex volatile.
ICICI Bank, Reliance Industries, HDFC, L&T and SBI were also the gainers. But selling was witnessed in technology stocks on the back of profit booking.
The other losers were ONGC, HDFC Bank, Sun Pharma, DLF, ITC, Hindalco, M&M and Maruti.
In Sensex, power stocks became the top gainers.
Reliance Power gained 5.6pc, Reliance Infrastructure and Suzlon Energy were up 3pceach. NTPC, Power Grid Corp and Neyveli Lignite surged 1 to 2pc.
GVK Power, GMR Infra, Siemens, Lanco Infratech and Tata Power were up 0.3 to 0.8pc.
In technology space, Wipro, TCS, HCL Tech and Infosys lost 0.7 to 2pc.
Top gainers in the BSE Midcap were Apollo Hospital with 12.3pc rise and Future Capital, Godfrey Phillip, Bayer Cropscience and Wockhardt rose 5 to 8pc.
Top losers in BSE MIdcap were Great Offshore, Gammon India, HCL Info, Kalpataru Power and Amtek Auto down 2.5 to 5pc.
Top gainers on the BSE Smallcap include Kalindee Rail up 18pc and Titagarh Wagons gained 15pc. Sarda Energy, Tinplate and Aarti Industries gained 8.7 to 12pc, while Gee Kay Finance, Hinduja Global, Suashish Diamon, Mount Everest and Andhra Cement with 2.6 to 4pc lost beacme the top losers.
Nifty volatile with positive bias; power, metal up
Nifty was volatile with positive bais, owing to bying interest in power, telecom, metal and auto stocks.
At 11:09 am BSE Sensex was trading at 17,396, up 35 points and the Nifty was at 5,188, up 10 points.
ICICI Bank, Reliance Industries, HUL and Ambuja Cements were gainers in the early.
Hwoever, the gains were capped to a major extend owing to selling interest in technology and select pharma stocks, and ONGC, HDFC Bank, SBI, ITC, BHEL and Hindalco.
In the power space, Reliance Infrastructure and Reliance Power surged 5.5pc, Suzlon Energy, Neyveli Lignite, Siemens, Torrent Power, Tata Power, NTPC, Power Grid Corp, Lanco Infratech and NHPC rose 0.7 to 3pc.
In the metal space, Tata Steel, Hindalco, Sterlite Industries and SAIL were up 1.5 to 3.3pc, while JSW Steel, Sesa Goa, Jindal Saw and Jindal Steel slipped 0.4 to 0.7pc.
Among the midcaps, Godfrey Phillip, Prakash Industries, Fortis Health, Great Offshore and Gujarat NRE Coke gained 9 to 10.5pc. But Gammon India dipped 8.5pc and Kalpataru Power, Ipca Labs, India Infoline and Bank of Maharashtra fell 2 to 5pc.
In the smallcap space, Manaksia, BL Kashyap, Godawari Power, VIP Industries and Titagarh Wagons rose 12 to 15.5pc while Gee Kay Finance, 3i Infotech, Sahara One and Garware Offshore were down 4.6 to 6pc.
Nifty reaches 5,200 mark; Reliance power up 4pc
Sensex opened on a positive day. Nifty touched the psychological 5,200 mark in the early trade since May 2008 owing to buying interest in power, telecom, metal and select banking stocks.
At 10:00 am, Nifty was trading at 5,200.25, up 21.65 points and the Sensex was at 17,440, up 80 points.
Buying interest were seen among the frontliners NTPC, Siemens, Bharti Airtel, Idea Cellular, Axis Bank, ICICI Bank, Sterlite and Power Grid.
with the start of 1200 MW Rosa Project, Reliance Power rose 4.7pc, while BPCL, Ambuja Cements, Tata Motors, ONGC and Hindalco were the losers in early trade.
Ranbaxy Labs slipped 3pc, as its arm Ohm Lab received FDA and USFDA warning tois for manufacturing norm violation.
In the midcap space and Smallcap space:
Escorts, Fortis Healthcare, Tanla Solutions and Subex gained 2 to 2.7pc. Max India gained 3.8pc.
Goldman is expected to pick up 9.4pc stake in Max India for Rs 540 crore via subscribing to compulsory convertible debentures which will be converted into shares in 15 months.
Dish TV gained 2pc, owing to reports that advertisers may have to pay 10-15% premium to DTH from January, premium may go up later.
Gammon India tumbled 8pc owing to concern of Kota bridge collapse.
In the global cues: Asian markets were trading lower. Shanghai, Hang Seng, Nikkei, Kospi and Taiwan Weighted slipped 0.2 to 0.7pc. However, Straits Times rose 0.1pc.
The US markets gained for sixth straight session on the back of positive retail sales. The Dow Jones Industrial Average ended up 27 points at 10,547.