BSE Sensex closed at 17,464.81, up 120.99 points or 0.7% and the 50-share NSE Nifty rose 0.61% or 31.60 point.
Oil & gas, power, capital goods, and select auto, banking & technology stocks helped the indices to remain on the higher side.
However, the gains were capped to a major extent due to selling in the last couple of hours in pharma & realty stocks along with Reliance Communications, JSPL, ICICI Bank, PNB, HUL, Idea & Reliance Infrastructure.
Nifty up 49 pts; RIL, SBI, BHEL lead
Nifty continued it 5,200 mark hold and traded higher amid volatility.
Market was supported by buying in heavyweights like Reliance Industries, SBI, NTPC, BHEL, TCS and L&T.
However, DLF, Jindal Steel, Maruti, HCL Tech, Cipla and Siemens were the losers.
At 13:07 pm, Sensex was trading at 17,520, up 177 points and the Nifty was at 5,218, up 49 points.
All sectoral indices were trading in green.
Capital Goods and Oil & Gas up 1pc each were the leading sectors. Auto, Power, Bank and Realty indices gained 0.6 to 0.8pc.
In the power space, Auto, Power, Bank and Realty indices went up 0.6 to 0.8pc.
In the realty space, Indiabulls Real was up 3.91pc and Unitech gained 0.60pc.
SBI rose 2.10pc, Axis Bank, Bank of Baroda, HDFC Bank and ICICI Bank were up 0.5 to 1pc in banking space.
Top losers on the BSE Midcap - Shriram City lost 4.7%. Great Offshore, BF Utilities, Sintex India and Simplex Infra fell 1.7-2%.
On the BSE Smallcap, Money Matters was locked at 20pc upper circuit. Aditya Birla, Jai Balaji Industries, Balkrishna Industries and HSIL were up 10 to 14pc were top gainers.
Top losers on the BSE Smallcap were Gee Kay Finance, Panacea Biotec, Maharashtra Ele, Gayatri Project and Indoco Remedies slipped 3.5 to 5pc.
Asian markets were also trading higher. Hang Seng gained 1.75pc. Shanghai, Straits Times and Taiwan Weighted were up 0.5 to 0.9pc.
Nifty extends rally; trades at 5,200 mark
Nifty extended rally and was trading at 5,200 mark owing to buying in all sectors. The leading sectors at this session were Oil & gas, power, capital goods, technology and realty. Maruti Suzuki was the only one trading lower.
At 10:58 AM Sensex was trading at 17,511, up 167 points and the Nifty was at 5,217, up 48 points.
In the power space, NTPC rose 2.7pc, Neyveli Lignite, Power Grid Corp, Suzlon Energy, NHPC and Reliance Infrastructure were up 1 to 2pc. Adani Power, Tata Power, Reliance Power and Torrent Power gained 0.6 to 0.8pc.
In the oil&gas space, Reliance Industries surged 1.65pc, Cairn India, GAIL, BPCL, ONGC and IOC gained 0.3 to 1.3pc.
L&T, Crompton Greaves, Siemens, BHEL, Punj Lloyd and ABB went up 0.5 to 1.4pc in the capital goods segment.
In the realty stocks, Indiabulls Real and Mahindra Life rose 2.8pc each. Unitech was up 1.15pc and DLF up 0.46pc.
Hindalco, Sterlite Industries, Tata Steel, SAIL, JSW Steel, Jindal Steel and NALCO moved up 0.35 to 1pc.
In the Midcap space, gainers were OnMobile Global up 10.52pc, Reliance Industrial Infrastructure, KGN Industries, BGR Energy and Bajaj Finserv up 4 to 5pc.
However, Blue Dart, Kirloskar Brothers, Great Offshore, Central Bank and Apollo Hospital with 1.3 to 2.8pc lost were on the losing side.
In the Smallcap space, Money Matters was locked at 20pc upper circuit. Jai Balaji Industries rose 16pc. Tinplate, HSIL and Bliss GVS gained 7 to 11pc . However, Sahara One, Modern India, Ushdev Int, Gee Kay Finance and Hatsun Agro slipped 3 to 4.7pc.
Sensex opens on a positive note; power, metal up
Strong global cues helped Sensex to start on positive on the last day of 2009. Market experienced volatility owing to F&O expiry day and was supported by power, realty, technology, FMCG, capital goods, metal and banking stocks.
At 9:56 am Sensex was up up 139 points at 17,483 and Nifty rose 37 points at 5,206. CNX Midcap was up The CNX Midcap rose 58 points, to 7,476.
Among the frontliners the early trade gainers were NTPC up 3pc. Siemens, Suzlon Energy, Unitech, Tata Steel, Cairn India, Reliance Capital, TCS, Jaiprakash Associates, Power Grid, DLF, ACC and ICICI Bank.
On the other hand, Maruti Suzuki was on the losing side.
In the Midcap and Smallcap space, Gallantt Metal was up 6.5pc and Lloyds Steel up 3pc, Ispat gained 0.7pc, SAL Steel rose 3pc, United Spirits was up 0.7pc, HOEC surged 4pc.
Amtek Auto was up 1pc, but Amtek India lost 2.5pc, following Punjab & Haryana HC dismissal of scheme arrangement between Amtek Auto, Amtek India, Ahmednagar forging on valuation.
Su-Raj Diamonds shot up 7pc.
In the global cues:
Asian markets were trading higher. Hang Seng rose 1.5pc. Shanghai, Straits Times and Taiwan Weighted were up 0.35 to 0.8pc.