Benchmark share indices ended tad higher on Thursday, amid a volatile trading session, led by index heavyweight Reliance Industries and FMCG major ITC.
The 30-share Sensex ended at 16,070 up 40 points and the 50-share Nifty ended at 4,870 up by 12 points.
The Sensex and the Nifty reached an intra-day high of 16,240 levels and 4,922 mark, respectively.
Meanwhile, the rupee gained on Thursday as global risk assets stabilised globally after a recent selloff. The rupee was at 54.43 to the versus its Wednesday close of 54.51, which was just off the record low of 54.52 to the dollar hit on the same day.
On the global front, the Nikkei share average rose 0.9% on Thursday as upbeat Japanese economic growth data trumped worry about Europe and investors shopped for bargains after Wednesday's market tumble left the benchmark down 14% this quarter.
The Nikkei benchmark slipped 0.4% in the morning, stumbling below a support level at 8,800, but later changed gears to close up 0.9% at 8,876.59. The broader Topix index rose 1.1% to 747.16.
European markets are trading weak with CAC, DAX and FTSE dipping by almost 1% each.
Back home, BSE FMCG index surged by over 2% followed by counters like Realty, Metal and Oil & Gas, all gaining by nearly 1%.
On the losing side, BSE Capital Goods index plunged 2% followed by counters like Consumer Durable and Auto, both dipping by nearly 1% each.
ITC was the top Sensex gainer, up over 3% at Rs 236 on reports that the company has signed an agreement with the Board of Investment of Sri Lanka to build a luxury hotel
HUL gained by nearly 1%.
Index heavyweight Reliance Inds surged over 1% as traders say the company is increasing the volumes of its ongoing share buyback programme.
The Indian energy conglomerate has bought 14.3 million shares since its buyback opened on February 1, traders estimate. It will close on January 2013.
DLF from the Realty space gained by nearly 2%.
Banking and financial shares too witnessed some buying interest. HDFC, HDFC Bank and SBI gained between 0.3-2%.
Other notable gainers include JSPL, Maruti Suzuki, Tata Steel, NTPC and Tata Motors.
From the losers pack, Capital Goods majors L&T and BHEL slipped between 2-4%. Nomura has downgraded Larsen & Toubro to 'reduce' from 'buy', and nearly halved target price to 992 from 1,691.
Among Auto space, M&M was the top Sensex loser, plunging by nearly 4%. Bajaj Auto has slipped by almost 3% after reporting 12% year-on-year (y-o-y) growth in net profit before exceptional items at Rs 759 crore for the fourth quarter ended March 2012.
Other notable losers include Cipla, ONGC, Tata Power, Hindalco, Sun Pharma, TCS and Infosys.
Among other shares, CESC ended 4% higher after the company said it has acquired Indiabulls Group's outfits engaged in developing two separate hydropower projects in Arunachal Pradesh.
AstraZeneca Pharma India spurted 20% on huge volumes.
Dish TV India rallied over 10% to Rs 61 on reporting a healthy 60% year-on-year (y-o-y) growth in standalone operating profit at Rs 144 crore for the fourth quarter ended March.
The market breadth in BSE ended neutral with 1,340 shares advancing and 1,368 shares declining.
