Key share indices ended higher amid volatility on Tuesday weighed by Reliance Inds, banking and capital goods segments.
The markets opened firm mirroring higher global cues.
Meanwhile, Inflation based on the all India Consumer Price Index stood at 7.65% in January, as per the first nationwide retail inflation data released by the government today.
While 'food and beverages' reported a moderate rate of price rise of 4.11% year-on-year in January, the inflation numbers for fuel and light, and clothing, bedding and footwear segments were in double-digits.
The 30-share Sensex ended at 18,429 up139 points and the 50-share Nifty ended at 5,607 up by 43 points.
The Sensex and the Nifty reached an intra-day high of 18,471 levels and 5,623 mark, respectively.
On the global front, Asian markets ended on a mixed note. Japan's Nikkei share average dipped after failing to top the key 9,500 level on Tuesday, while Mazda Motor Corp shed nearly 10% on a report that it will raise $2 billion through a share issue and loans to shore up its finances.
European stocks are trading weak after the agreement of a second bailout deal for Greece removed the threat of a disorderly bond default but left markets unconvinced it could avoid further turmoil.
CAC, DAX and FTSE are down by nearly 1% each.
Back home, index heavyweight Reliance Industries zoomed by nearly 3%. ONGC rallied 2.5% on reports that the overseas investors have assured the government they would buy up the proposed 5% stake sale in the company.
BHEL was the top Sensex gainer, up 5% on reports that the Cabinet Committee on Economic Affairs (CCEA) will impose import duty at the rate of 20% on the power generation equipment for projects above 1,000 megawatts (MW).
From the Metal space, Tata Steel, Hindalco and Jindal Steel gained between 1-3%.
Consumer Durable stock like Titan Industries surged 6%,