The BSE Sensex ended higher on Thursday led by gains in technology shares, ahead of a crucial meeting of the European Central Bank, which may announce new policies to contain the euro zone crisis.
IT services providers such as Infosys
ECB chairman Mario Draghi is set to unveil his plan later in the day to save the euro. European stocks also edged higher in anticipation of the ECB's action, but fears of a disappointment weighed.
Traders expect any substantial action by the ECB can lead to a relief rally in the domestic market, providing respite from the recent range-bound trade.
"While ECB is important, there seems to be a floor around 5,000 as inflation is easing and a cap around 5,600 for Nifty due to government inaction on reforms," Sandeep J. Shah, CEO of Sampriti Capital, said.
"But if ECB announces substantial measures Nifty can rally by 200 points."
The benchmark BSE index rose 0.19 percent to end at 17,346.27 points.
The 50-share NSE index ended up 0.24 percent at 5,238.40 points.
Infosys ended up 3.53 percent, while Wipro
ITC's core tobacco business is getting squeezed and it is venturing into dairy products, drinks and perhaps even healthy breakfast foods to try to expand its money-losing consumer products business.
Shares in State Bank of India
Macquarie has upgraded Yes Bank
Shares in Yes Bank ended 0.8 percent higher.
Shares in Motherson Sumi Systems Ltd rose 2.8 percent after CLSA initiated coverage on the stock with a 'buy' rating and a target price of 235 rupees, saying it expects the company's earnings to double over FY12-14 as its Peguform acquisition begins to contribute.
Mahindra & Mahindra Ltd
Shares in Mahindra and Mahindra rose 0.5 percent.
Hero MotoCorp Ltd
Shares in Hero MotoCorp fell 1 percent.