Markets ended with marginal gains on Tuesday, amid the ongoing debate on foreign direct investment in retail, led by gains in oil and gas and financial shares.
The 30-share Sensex ended up 43 points at 19,348 and the 50-share Nifty closed 18 points higher at 5,889.
In Asia, Shanghai Composite and Hang Seng closed 0.2-0.8% higher.
However, most other indices slipped lower as some weak global manufacturing data contrasted with earlier numbers showing improvement at Chinese factories. Nikkei, Straits and Kospi ended down 0.1-0.3% each.
Stocks in Europe firmed up after a mixed start on Tuesday amid discouraging US November manufacturing data. The CAC-40, FTSE-100 and DAX were up 0.2-0.6% each.
The sectoral indices on the BSE were led by Oil & Gas Index followed by healthcare and realty.
However, Auto, IT and Capital Goods and COnsumer Durables were the top losers on profit taking after recent gains.
Index heavyweight- Reliance Industries was up 2.5% at Rs 824 on reports that the oil ministry may approve the company's investment plans for the KG-D6 block. State-owned ONGC closed 1% higher.
In the financial space, ICICI Bank ended up 1.5%, SBI ended 1.6% higher while HDFC ended up 0.6%.
Tata Power Company ended higher by 4% at Rs 112 on reports that the Tata Group firm will sign agreement with Jharkhand State Electricity Board (JSEB) on Wednesday, December 5.
However, Mahindra & Mahindra has slipped 1.8% to end at Rs 939. TCS ended down 1.2% while FMCG majors ITC and HUL ended down 0.4-0.6% each.
In the broader market, shares of Jaipraksh Associates and Jaiprakash Power Ventures surged 4.5-10% each on the BSE after getting final forest clearance for coal block in Madhya Pradesh (MP).
Jet Airways (India) slipped 5.2% to Rs 527 on profit taking after the stock rallied 61% in past three-weeks on speculation of 24% stake sale to Etihad Airways.
Hotel stocks such as Taj GVK, Hotel Leela and Viceroy Hotels gained between 1-6.5% each on hopes of higher sales after the government relaxed norms on tourist visas which had mandated a two-month gap between consecutive visits by overseas nationals.
United Breweries has rallied 19% to end at Rs 999, also its record high on the Bombay Stock Exchange (BSE) on back of heavy volumes.
The stock has rallied over 19% in past two trading sessions from Rs 796 after the company included in the MSCI India index from November 30, 2012. An addition into the index leads to inflows from passively managed funds.
In the broader market the BSE Mid-cap index ended up 0.1% while the BSE Small-cap index gained 0.6%.
Market breadth on the BSE ended positive with 1,607 gainers and 1,327 losers.