At the closing session, Sensex ended at 17,641.08, up 86.78 points and Nifty settled at 5,274.85, up 22.65 points.
Heavyweight Bharti Airtel was the gainer among the gainers.CAC, DAX and FTSE gained 0.5pc each, at the time of closing of Indian equities.
Positive European cues were also quite supportive.
The gain was capped to a major extent owing to selling in metal, cement, pharma and select telecom companies' shares, including heavy weight Reliance Industries, ITC and NTPC.
Post disinvestment secretary's comments, almost all the public sector companies as well as divestment candidates witnessed huge buying interest along with list of stocks.
Nifty trading at 5283.80 mark
At 12.38 pm, Sensex was trading at 17662.88 up 108.58 points and Nifty was trading at 5283.80, up 31.60 points.
Buying interest were witnessed at buying in auto, banks, PSU, consumer durables and capital goods stocks, while selling pressure were seen at realty, metal and FMCG stocks.
Ambuja Cements, Tata Steel, Cairn India, Grasim and Tata Power with 1 to 2.5pc were on the losing side.
In the banking space, SBI, ICICI Bank, HDFC Bank, HDFC and Axis Bank gained 2 to 4pc.
Among the Leather space, Bata India was up 0.96, Crew BOS gained 2.3pc, Bhartiya International shot up 18.48pc and Liberty Shoes was up 0.29pc.
Among the largecaps, top gainers were auto and banking stocks. On the gaining side were HDFC Bank, Mahindra and Mahindra, HDFC, ICICI Bank and Maruti Suzuki up 2 to 4 pc.
Top gainers on the BSE Midcap include Gujarat Flourochem, UTV Software, Andrew Yule, Engineers India and Triveni Engineering were up 7 to 15pc.
Top losers on the BSE Midcap were Dish TV India, State Bank of Bikaner, Peninsula Land, Madras Cements and Bajaj Hindusthan with 2 to 3.5pc lost.
In the Smallcap space, Vinati Organics, City Union Bank, Pratibha Industries, Solvay Pharma and Hind Nat Glass up 9 to 18pc were the top gainers.
Top losers on the BSE Smallcap were Prraneta Inds, Richa Inds, Escorts, PVR and Centrum Finance with 3 to 7pc lost.
Nifty trading in green; TCS gains
Amidst choppiness,Nifty was trading in green, supported by banking and technology stocks. The leader in the Nifty was TCS gaining 1.8pc on strong set of numbers in Q3FY10.
At 10:03 pm, Sensex was trading at 17,628.85, up 74.55 points and the Nifty was at 5,267.55, up 15.35 points.
In the largecaps space, HDFC Bank, HDFC, TCS, ICICI Bank, SBI and Suzlon Energy rose 1.3 to 2.2pc were the gainers.
The losers among the largecaps were Tata Steel, Sterlite Industries, Grasim, Tata Motors, Tata Power, Jindal Steel and Ambuja Cements fell 0.8 to 1.5pc.
Among the midcaps, gainers were Gujarat Flourochem, UTV Software, Andrew Yule, Engineers India and Atlas Copco with 6.5-12.3pc gain.
Losers in the midcap space were Tata Steel, Sterlite Industries, Grasim, Tata Motors, Tata Power, Jindal Steel and Ambuja Cements down 0.8 to 1.5pc.
In the smallcaps space, City Union Bank and Prime Securities went up 10.6% each. Pratibha Industries, Navin Fluorine and Henkel India gained 7.5-9.5pc, while Centrum Finance, Richa Industries, Graviss Hosp, Religare Tech and Escorts lost 3.8 to 5pc.
On the bourses, Engineers India, ABG Shipyard, Infosys, Bharati Shipyard, TCS, ICICI Bank, Jindal Steel and Reliance Industries were most active shares.
Sensex opens flat, volatile with negative bias
Sensex opened flat on negative note, owing to weak gloabl cues. While buying interest were seen at select technology on good set of numbers from Infosys & TCS and power stocks, Banking, oil & gas exploration, realty and select metal stocks were the losers in the early trade.
At 9:04 am, the Nifty was down 11 points and trading at 5,240and Sensex down 22 points was trading at 17,533. On the other hand, the CNX Midcap was up just 8 points at 7,804.
Among the frontliners, the eraly losers were Sterlite, Tata Steel, ICICI Bank, Axis Bank, Unitech, DLF, PNB, Reliance Industries, Infosys and ONGC were the losers in trade.
Wipro shot up 1.4pc and Reliance Power, BHEL and NTPC were the other gainers. Jaiprakash Associates gained ahead of numbers as the market started.
Midcap and Smallcap space:
Ultratech Cement fell 2.8pc.
DCB fell 2.5pc. ABG Shipyard slipped 1% and Great plunged 0.5pc
FAME India lost 4pc and Inox Leisure dipped 2pc on profit booking.
On the other hand, Engineers India shot up 12%, the stock had witnessed strong rally in the last week on FPO news.
City Union Bank gained 6pc. Shriram Transport was up 0.4pc on good set of numbers.
Asian markets were flat. Nikkei tumbled 1.8pc. Hang Seng was down 0.9pc. Kospi and Taiwan were down 0.3 To 0.4pc. Jakarta and Shanghai were marginally in the red.
The US markets witnessed their worst loss in four weeks on JPMorgan results. The CRB Index was down over 1pc.