The benchmark indices extended gains after European markets opened in green, while investors remained watchful prior to the earnings season for December quarter.
The Sensex ended up 173 points or 0.6 percent at 26,899.56 and the Nifty was up 52.55 points or 0.6 percent at 8289.
The market breadth, indicating the overall health of the market was strong. On the BSE, 1,655 shares rose and 1,142 shares declined. A total of 372 shares were unchanged.
Tata Motors, Tata Steel, Adani Ports, Asian Paints and HDFC Bank were majour contributors while Axis Bank, Dr Reddy's Labs, ONGC, Lupin and NTPC suffered in the Sensex.
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