The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,149.08 points, closed at 17,198.95 points, up 67.87 points or 0.4 percent from Tuesday's close at 17,131.08 points.
At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed at 5,108.15 points, up 0.35 percent from its last close.
However, profit-booking in mid-to-small scrips resulted in the BSE midcap index ending 0.12 percent lower and the BSE small cap closing 0.16 percent down.
The market breadth was negative, with 1,290 stocks advancing, 1,486 declining and 73 remaining unchanged.
Sectors that saw sizeable gains were FMCG and energy, while realty stocks came under selling pressure.
Among the prominent gainers on the Sensex were Hero Honda, up 2.24 percent at Rs.1,725.95; ITC, up 1.93 percent at Rs.268.75; Hindustan Unilever, up 1.75 percent at Rs.284.35; and HDFC Bank, up 1.46 percent at Rs.1,802.05.
Some of the losers were DLF, down 2.91 percent at Rs.362.15; Reliance Communications, down 1.44 percent at Rs.170.95; Jaiprakash Associates, down 1.16 percent at Rs.225.80; and Tata Motors, down 0.9 percent at Rs.643.70.
According to markets regulator, Securities and Exchange Board of India (SEBI), foreign institutional investors bought scrips worth $65 million Tuesday.
Prominent Asian markets ended in the positive, having ended lower Tuesday.
In China, the Shanghai composite index shut shop 2.07 percent in the green at 3,290.17 points.
A key Japanese index, the Nikkei, closed 0.43 percent or 40.06 points up at 9,441.64 points.
The Hang Seng, the benchmark index of the Hong Kong Stock Exchange ended at 22,611.8 points, 0.84 percent or 188.66 points higher.
The Kospi, the benchmark index of the Korean Stock Exchange, was at 1,611.88 points, up 0.34 percent.
European markets were lacklustre.
Britain's FTSE 100 index was ruling at 5,354.45 points, up 0.57 percent, while its French peer, CAC 40, was trading 0.47 percent higher at 3,802.37 points.
The German index, DAX, was trading at 5,783.11 points, 0.24 percent above its last closing figure.
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