Mumbai: The BSE benchmark Sensex today closed 43 points higher on the back of good buying in Tata Power, RIL and SBI amid a firming European trend.
The Bombay stock Exchange sensitive index resumed lower at 19,277.58 and hovered in a narrow 110-point range, before ending at 19,348.12 -- a gain of 42.80 or 0.22 percent.
The broad-based National Stock Exchange index Nifty edged up by 18.30 points, or 0.31 percent to 5,889.25.
"RIL gained 2.49 percent on back of media reports that the Oil ministry is expected to approve the company's investment plans for the KG-D6 block," said Milan Bavishi, Head Research, Inventure Growth & Securities.
Brokers said investors bought banking and financial shares like SBI, ICICI Bank and HDFC on hopes of rate cut by RBI soon. Tata Power was the best Sensex performer with a gain of 4 percent on heavy fund-buying, they added.
In the 30-share Sensex, 11 stocks gained while 19 including TCS, M&M and ITC ended in negative zone.
Meanwhile in Parliament, Opposition BJP and Left parties demanded separate debates with voting on FDI in retail and related amendments in Foreign Exchange Management Act (FEMA) rules in Lok Sabha, but it was vociferously opposed by the government and rejected by Speaker Meira Kumar.
Market participants remained cautious ahead of the discussion on FDI in retail and were still weighing their bets after last week's 4.5 percent surprise rally, analysts said.
"The banking sector today saw revival from lower levels and was up by 0.75 percent percent. Consumer Durables was down by 0.72 percent due to profit-booking. IT and Auto were also marginally in negative," said Nidhi Sarswat, Senior Research Analyst, Bonanza Portfolio Ltd.
The positive domestic sentiment was aided by the firming trend in European region, said traders. However, most of the Asian stocks closed with losses.
Most Asian stock indices ended lower today after reports that weak global manufacturing data contrasted with earlier numbers showing improvement at Chinese factories.
Key indices in Singapore, South Korea and Japan ended lower by 0.12-0.27 percent while indices in Taiwan, Hong Kong and China closed higher by upto 0.78 percent.
Indices in the UK, France and Germany ended with gains of 0.24-0.70 percent range.
Back home, 19 out of 30 Sensex-based scrips closed in the red while 11 rose. Tata Power was the top gainer with a rise of 4 percent, followed by RIL (2.49 percent), SBI (1.59 percent), Bajaj Auto (1.55 percent), ICICI Bank (1.53 percent), ONGC (0.97 percent), Gail India (0.87 percent), Jindal Steel (0.73 percent) and HDFC (0.63 percent).
On the losing side, M&M ended 1.75 percent down, followed by Wipro (1.65 percent), NTPERCENT (1.34 percent), Sterlite Ind. (1.29 percent), TCS (1.25 percent) and Maruti Suzuki (0.83 percent).
Among the sectoral indices, the BSE-Oil&Gas rose by 1.57 percent, followed by BSE-Realty (0.84 percent), BSE-Power (0.83 percent) and BSE-Bankex (0.75 percent).
However, BSE-CD declined by 0.72 percent and BSE-IT by 0.68 percent.
Total market breadth remained positive as 1,607 shares closed with gains while 1,327 settled with losses.
Total turnover was higher at Rs 2,940.27 crore from Rs 2,471.02 crore on Monday.
Foreign Institutional Investors (FIIs) bought shares worth a net Rs 302.67 crore Monday as per provisional data from the stock exchanges.