Sensex ended at 17,265.87, up 70.06 and Nifty closed at 5178.90, up 22.25.
The markets total turnover was reported as Rs 93,709.78 crore, which included Rs 12,805.85 crore from the NSE cash segment, Rs 77,032.20 crore from the NSE F&O and the balance Rs 3,871.73 crore from the BSE cash segment.
In the telecom stocks, Bharti Airtel and Idea Cellular closed flat after losing 8pc on May 12. Reliance Communications too ended on a flat note.
Tata Motors, Mahindra and Mahindra and Bajaj Auto rose 2 to 3pc. Hero Honda, Maruti Suzuki closed flat.
The top gainer in the realty state was DLF. Indiabulls Real Estate rose close to 5pc. HDIL surged 2pc.
Sugar stocks witnessed smart rally in Thursday, May 13 trade. Stocks like Triveni Engineering, Shree Renuka, Balrampur Chini, Sakthi Sugars and Bajaj Hindusthan rose in the range of 3 to 6pc.
Sun Pharma, Dr Reddys Labs and Lupin rose close to 1pc today. Cipla slipped 0.35pc.
European markets were trading flat. Asian markets closed with good gains of 1 to 2pc. However, only Straits Times slipped 0.5pc. Dow Jones Futures was down 12 points at 10864.
Nifty up 20pts with positive bias
Markets held on to its opening gains with positive bias. Buying continued in the realty and auto stocks.
At 2:30 PM Sensex was trading at 17,254.82, up 59.01, while Nifty was at 5176.95, up 20.30.
Top gainers on the Nifty: Mahindra and Mahindra, Tata Motors, Jaiprakash Associates, Reliance Infra and Unitech rose 3 to 4.4pc.
Top losers on the Nifty: Wipro, BPCL, GAIL, Ambuja Cements and HDFC Bank slumped 0.2 to 1pc.
In the midcap space, Godrej Consumer, Coromandel International, Bajaj Holdings, Bajaj Finserv and Whirlpool rose 6 to 9pc, while Gee Kay Finance, Motherson Sumi, Dalmia Cement, Allahabad Bank and OnMobile Global down 2.5 to 7pc were on the losing side.
In the smallcap space, Golden Tobacco, Venkys, JMC Projects, CMI FPE and ABG Shipyard rose 8 to 14pc. Subhkam Capital, Lesha Energy, Rico Auto, Infinite Comp and Avaya Global Connect slipped 3 to 5pc.
Asian stocks hit highs for the week on Thursday post austerity steps announced by Portugal and Spain which raised of capping Europe's debt crisis, while IBM's strong profit forecast boosted tech shares.
The optimism was seen in the opening of European markets. DAX, CAC and FTSE rose close to 1pc in the early trade.
Sensex gained 100 pts; realty, auto shine
Benchmark Sensex was northbound and gained 100 points. Nifty was facing resistance at 5200 level. All sectors were in the buying radar. The top gainers were realty, auto, banking and capital goods companies' shares.
At 11:30 am, Sensex was trading at 17,332.43, up 136.62 points and the Nifty was at 5195.20, up 38.55 points.
The only losers in the early trade were Wipro, Tata Power, BPCL and Ambuja Cements.
Top gainers - M&M was trading at Rs 564.30, up 3.29pc, Tata Motors was at Rs 826, up 2.90pc; Jaiprakash Associates was at Rs 134.05, up 2.52pc, Reliance Infrastructure was at Rs 1,022.80, up 2.22pc, ICICI Bank was at Rs 927.60, up 1.40pc and Unitech was at Rs 79.45, up 2.38pc.
Among the midcaps, Godrej Consumer, Bajaj Holdings, Den Networks, Indiabulls Real and Bajaj Finserv rose 4.5 to 8.5pc. However, Gee Kay Finance, Allahabad Bank, Dish TV India, OnMobile Global and Info Edge slipped 2 to 7pc.
Among the smallcaps, Thiru Arooran, JMC Projects, CMI FPE, Bhansali Eng and Hitachi Home shot up 6 to 10.5pc, while the losers were Ushdev International, Graviss Hospital, Avaya GlobalCon, Rico Auto and Websol Energy down 2.7 to 4.7pc.
Asian markets shot up further. Nikkei, Kospi and Taiwan moved up 2pc each. Shanghai, Hang Seng and Jakarta gained 0.8 to 1pc. The US markets closed 1.4 to 2pc higher on Wedesday, May 12 on stronger than expected Germany GDP data and successful Portuguese bond sale.
Nifty hits 5200 in opening trade
Markets opened on a positive note on the back of strong global cues.
At 9:02 hours IST, the Nifty was trading at 5194, up 38 points, which hit 5200 in opening trade and the Sensex was at 17332, up 136 points.
Gainers in the early trade were Reliance Infrastructure, Jaiprakash Associates, SBI, ICICI Bank, Kotak Mahindra Bank, Bharti Airtel (up 1.5pc post fall of 8pc on Wednesday), Idea Cellular, DLF, Unitech, M&M and Tata Motors.
Today's new listing - Nitesh Estates was trading at Rs 53.40, slipped 1.3pc from its issue price of Rs 54 per share.
Godrej Consumer gained 5pc on good volumes. There were reports that the company will buy out Sara Lee for USD 234 million.
Kingfisher Airlines shot up 2.5pc post reports of the company undertaking realignment and restructuring of debt.
Shree Renuka Sugar, Balrampur Chini and Bajaj Hindusthan gained 1 to 2.5pc.
Bajaj Finserv rose 2pc on good results.
Goodyear rose 4.7pc. Its delisting floor price fixed at Rs 245/share; offer will open on May 28 and close on June 3.
Talwalkars Fitness was up 1.4pc.
However, Thermax slipped 1.5pc as companies margins were under pressure in fourth quarter.
MRPL dipped 1.5pc as its Q4 net profit declined and GRM performance was bad.
Asian markets were trading higher. Nikkei, Kospi and Taiwan gained 1.5 to 1.9pc. Shanghai, Hang Seng and Jakarta surged 0.7 to 1.2pc.
The US markets ended 1.4-2% higher on Wednesday.