Key benchmark indices remained stable throughout the trading session and ended on a firm note, led by index heavy-weight Reliance Industries and ICICI Bank.
The BSE Sensex ended at 17,597, having advanced 119 points and the Nifty at 5,359, up 41 points.
During the day, the BSE benchmark index had touched the day's high at 17,664 and the day's low at 17,570.
Further, the rupee climbed to its strongest level in nearly two weeks, the first session of the new financial year 2012-13, bolstered by bunched dollar inflows after a three-day weekend.
The currency, which fell 12.35% in 2011-12, was helped by improved outlook for risk taking after strong manufacturing data from the United States and China, traders said.
In Asia, Japan's Nikkei share average fell but remained above 10,000, with the yen's climb to a three-week high against the dollar prompting investors to lock in profits on blue-chip exporters that have logged sharp gains since January.
The index ended at 10,050, down 0.59%.
The Hang Seng advanced 1.31%, while the Shanghai Composite index gained 0.47%.
Meanwhile, European markets are lower today with shares in London off the most.
At 1600 hours, the FTSE 100 was down 0.22% while France's CAC 40 was off 0.19% and Germany's DAX was lower by 0.05%.
Back home, index heavyweight RIL gained nearly 2% at Rs 753 and accounted for a 25-point gain on the Sensex.
RIL's Jamnagar manufacturing unit is planning to take Maintenance and Inspection shutdown of one of the diesel hydro treating unit for approximately three weeks duration from 2 April 2012.
Banking stocks rose on growing expectations of a rate cut from the RBI during its mid-April meeting.
The prominent gainers from the pack were Federal Bank, State Bank of India and ICICI Bank, up 2% each.
ICICI Bank accounted for a 23-point gain on the BSE benchmark index.
BSE Consumer Durables index ended at 6,794, up 2.14%. Whirlpool of India, TTK Prestige, VIP Industries and Blue Star, up 4-8%
Titan Industries ended higher by 2% at Rs 248 after the company said it commenced commercial production in its new integrated, state of art jewellery unit set up an excise free zone in Pantnagar, Uttarakand, UP, on March 29, 2012.
The BSE Capital Goods index advanced 1.65% at 10,371 levels. From the space, Bharat Heavy Electricals moved higher by 1.50% at Rs 264.20 on reporting a provisional 14.6% year-on-year (y-o-y) growth in net profit at Rs 3,208 crore for the quarter ended March 31, 2011.
State-run heavy electrical equipment maker had recorded a single digit 2.2% growth in net profit for the quarter ended December 2011.
Meanwhile, the State-owned equipment maker has said it would withdraw the initial papers for its follow-on offer that were filed with Securities and Exchange Board of India (Sebi).
Hindalco Industries moved up 3.25% at Rs 131.80 and was the most notable gainer on the Sensex. Other gainers included Sterlite Industries, SBI, Larsen & Toubro and ICICI Bank, up 2-3% each.
The losers from the pack were Hero MotoCorp, Maruti Suzuki, TCS, Sun Pharma Industries and Bharti Airtel, down 1-2% each.
Hero MotoCorp dipped 2% to Rs 2,010 after the country's largest two-wheeler maker reported 2.4% jump, slowest in past five months, in its March sales at 528,290 units.
The company had sold 505,553 units in the corresponding month last year, Hero MotoCorp said in a statement.
Shares of Kingfisher Airlines rebounded from record lows and surged over 10% in trades as the standoff between the management and employees, agitating over delayed salaries, ended today.
The protestors accepted the assurance given by the beleaguered carrier's promoter Vijay Mallaya and decided to withdraw their agitation from tomorrow.
The overall market breadth was positive as 1,796 stocks advanced against 1,023 declining ones, on the BSE.