Benchmark share indices ended higher on Wednesday led by private banks and index heavyweights.
The 30-share Sensex ended up 131 points at 18,460 and the 50-share Nifty ended up 43 points at 5,615.
In the broader markets, the smallcap and the midcap indices underperformed the Sensex with 0.4% gains each.
In the Asian markets, Nikkei climbed 0.9% to end at a two-month high of 9,222, with exporters gaining after the yen hit a seven-month low against the dollar on expectations that a new government will aggressively push the Bank of Japan to expand monetary stimulus.
Shanghai Composite and Hang Seng up 1% each were the major gainers. Taiwan Weighted and KOSPI Composite down 0.8% and 0.3% respectively were the only markets to end in the negative territory.
European shares and the euro fell on Wednesday after Greece's international lenders failed to reached an agreement needed to provide it with emergency aid, though some of the losses were recouped on talk that a deal was close.
Euro zone finance ministers, the International Monetary Fund and the European Central Bank will gather again on Monday after nearly 12 hours of talks through the night failed to reach a consensus on how to bring Greece's debt down.
CAC, DAX and FTSE shed 0.2% each.
Among the sectoral indices, Realty, FMCG, Consumer Durables, Bankex, IT and Health Care indices which advanced 1-2% were the top gainers.
On the other hand, PSU, Auto and Power indices closed in the negative, down 0.2-1%.
The top gainers among the sensex-30 were Cipla, Sun Pharma [ Get Quote ], Tata Power [ Get Quote ], Jindal Steel, ITC, HDFC Bank [ Get Quote ] and ICICI Bank [ Get Quote ] up 1.5-2%. Cipla moved higher after the pharmaceutical company said it has offered to buy a about a 51% stake in South African drug maker Cipla Medpro.
On the losing side were NTPC, BHEL, Hero MotoCorp, Bharti Airtel [ Get Quote ], Maruti Suzuki, Bajaj Auto [ Get Quote ] and HDFC down between 0.4-3%.
In individual stocks, Honeywell Automation India [ Get Quote ] Limited (HAIL) tanked 20% to Rs 2,503 after the parent company denied delisting plans and said that the promoter will reduce their stake through an offer for sale.
DB Realty rallied 9% to Rs 125 on back of heavy volumes on reports that the Bharti Group is planning to buy a majority stake in the company's hospitality arm DB Hospitality for Rs 350 crore.
SpiceJet flew 7% at Rs 37 on reports of stake sale of the company after the resignation of Kalanithi Maran and his wife Kavery Kalanithi from the board of directors of Kal Airways.
The market breadth was positive.1487 stocks advanced while 1360 stocks declined on the BSE.