The BSE Sensex rose 0.23 percent on Wednesday on hopes of the government sailing through a crucial parliamentary vote on allowing foreign direct investment (FDI) in multi-brand retail.
The 30-share benchmark index ended 43.74 points higher at 19,391.86 with 16 of its components closing in the green.
The broader 50-share National Stock Exchange (NSE) Nifty index ended 0.19 percent or 11.25 points higher at 5,900.50 on Wednesday.
Optimism ahead of the key vote later in the day that could pave the way for further economic reforms boosted investor sentiment.
Meanwhile in the New Delhi bullion market, gold fell by Rs 200 to Rs 31,680 per 10 grams while silver lost Rs 965 to Rs 61,435 per kg.