Nifty succeeded to close above 5400 mark for the first time since Feb 5, 2008.
Reliance Industries' shares were leading the list of the top gainers.
Financial, realty, metal, power and capital goods companies' shares supported the markets.
Telecom, technology and FMCG companies' shares were still under pressure.
The BSE Sensex closed at 17985, 49 points up.
Nifty closed at 5400.65, 17.65 points up.
The most active companies were Infosys, SBI, Unitech, Tata Steel.
Unitech, DLF, Tata Steel were among the top gainers with 6.05 percent, 4.38 percent, 2.22 percent up respectively.
Idea Cellular, Bharti Airtel, Infosys were among the top losers with 5.85 percent, 1.91percent, 3.42 percent down respectivly.
Sensex continues to be red
Sensex remained to trade with marginal losses with the shares selling of technology, telecom, FMCG, and healthcare.
Asian market seemed week on the global front where European markets opened marginally higher.
Infosys crash with 3.5 percent was the reason behind the biggest loss of Technology and telecom.
"Likely wage hike and pricing pressures may have impacted margins," said Viju George, Executive Director of JP Morgan on Infosys' 4.27 percent revenue, which was below market expectation.
At 1:15 pm, the Sensex was trading at 17893, down 44 points and the Nifty was at 5372, down 11 points. The Nifty Jul future was trading at discount.
Idea Cellular, Bharti were among the top loser with 5.5 percent and 2.3 percent loss respectively. Reliance Communications fell 1.3 percent.
DLF and Unitech from realty space gained 1-2 percent. HDFC from financial pack rallied 2 percent. SBI, HDFC Bank and Axis Bank went up 0.4-0.9 percent IDFC gained 2.3 percent.
BASF, Phoenix Mills, Max India, Godfrey Phillip and MVL were among the midcaps with gained 4-8.6 percent.
Money Matters, Intra Infotech, Supreme Infra and Mcnally Bharat Engg were among the smallcaps with up 6-12.5 percent while English India, Subhkam Capital, Sterling Holiday, Henkel India and Graviss Hosp lost 3-7 percent.
Mkts continue negative; Infy, SBI most active
At 12:10 hrs, BSE Sensex was 17,877.78 down 59.42 points and NSE Nifty was 5366.10 down 16.90 points.
Nifty which had rallied in the last three sessions, has been consolidating since the beginning of the trade on Jul 13.
The frontliners including Infosys, M&M, Maruti, Hero Honda, ICICI Bank, Axis Bank and ACC plunged. The shares of technology, telecom and FMCG companies witnessed selling pressure.
The shares supporting markets were that of oil & gas, realty, capital goods, power and select financial companies.
The top loser were Infosys which went down 3.06 percent, TCS down 2.52 percent, M&M down 2.1 percent, Wipro down 1.76 percent, Bharti Airtel down 1.67 percent and Idea Cellular down 4.35 percent.
The top gainers include Suzlon Energy which surged 3.65 percent, BPCL up 2.12 percent, HDFC up 1.92 percent, Unitech up 1.53 percent, DLF up 1.25 percent and Jaiprakash Associates up 1.6 percent. Reliance Industries and SBI also jumped up 0.99 and 0.91 percent respectively.
About 1767 shares advanced while 1347 shares declined and 214 remained unchanged on BSE. Nearly 214 shares were unchanged.
Benchmarks open in red; Infosys dips
At 9:20 hrs, BSE Sensex was 17,919.44 down 17.76 points and NSE Nifty was 5376.45 dwon 6.55 points.
Nifty started the day on red down 7.6 points, following the fall of Infosys by 2 percent on its first quarter numbers. Sensex also opened with a negative note, down 9 points.
The frontliners HCL Tech, Wipro and TCS declined by 1 percent. Polaris, Hexaware and Rolta plunged 1 to 2 percent. Idea Cellular which plummeted 4.21 percent was the top loser on NSE.
The gainers in the early trade include Suzlon, DLF, Tata Steel, Cairn, GAIL, Siemens, Reliance Industries and Tata Motors. Tata Steel went up by 0.74 percent, Tata Motors went up by 0.71 percent and HDFC gained 0.58 percent on BSE. The top gainers on NSE were HDFCwhich gained 1.69 percent, Cairn India went up 1.47 percent and Suzlon Energy went up by 1.36 percent.