While the 30-share BSESensex opened 82.94 points higher at 31,929.83, the 50-share NSE Nifty gained 23.75 points at 10,012.50.
"Nifty rose today, after remaining in a 32-point range and closed the day higher by around 28 points", Deepak Jasani, Head - Retail Research, HDFC Securities, told IANS.
The top three winners were IT, Private Bank and Bank with gains of 0.43 per cent, 0.40 per cent and 0.39 per cent, respectively. The broader markets outperformed the benchmark index. The broader NSE Nifty ended 0.28 percent higher at 10,016.95.
The BSE Mid-cap Index is trading up by 0.49% at 15912 whereas BSE Small-cap Index is trading up by 0.69% at 16848. European shares dipped following a slightly weaker session on Wall Street as stocks exhausted from a streak of record highs.
On the other hand, Adani Ports and Special Economic Zone (0.62%), Housing Development Finance Corporation (0.43%), ITC (0.35%), Bajaj Auto (0.29%), Tata Motors (0.19%), and Hindustan Unilever (0.08%) were the biggest losers in the Sensex.
The gains were on a tight leash as investors tried to cushion their exposure ahead of the corporate results, which serve as a barometer to find out if the recent market rally is in keeping with its fundamentals.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined. Turnover in the cash segment rose to Rs 26,367.38 crore from Rs 24,578.55 crore on Tuesday.
In the primary market, the Rs 460 crore - MAS Financial IPO, which got fully subscribed on Day 1 of bidding process, was subscribed 36 times.