The BSE Sensex rose 0.26 percent on Thursday as expectations of favourable quarterly results pushed technology stocks.
The 30-share benchmark index ended 50.54 points higher at 19,764.78 with 15 of its components closing in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 0.27 percent or 16.25 points higher at 6,009.50 on Thursday.
A resolution to the U.S. "fiscal cliff" crisis lifted prospects of export-driven IT companies while investors were cautiously optimistic about Reserve Bank of India (RBI) policy in the new year.
Meanwhile in the New Delhi bullion market, gold rose by Rs 135 to Rs 31,400 per 10 grams while silver strengthened by Rs 800 to Rs 59,100 per kg.