The two key equity benchmarks, Sensex and Nifty, closed in the green amid high volatility. The BSE Sensex ended 228 points higher at 72,050. On the other hand, the NSE Nifty50 settled at 21,911, up 71 points.
On the 30-share Sensex platform, M&M was the lead gainer, up 6.51 per cent, followed by NTPC, PowerGrid, SBI, HDFC Bank, Asian Paints. On the down side, Axis Bank, ITC, HUL, Nestle, Sun Pharma, Reliance were among the losers.
In the broader market, BSE Midcap and Smallcap closed with gains of 1 per cent each.
Sectorwise, except FMCG, all other indices closed in the positive zone. Nifty PSU Bank index rose 3 per cent.
In the previous session on Wednesday, the BSE Sensex index closed 268 points higher at 71,883, while the NSE Nifty50 settled at 21,840, up 97 points.
In Asia, Japan's Nikkei and Hong Kong's Hang Seng settled with gains, while South Korea's Kospi slipped into the red. China's financial markets are closed for the Lunar New Year holidays. European markets were trading on a positive note in early deals. The US market settled with gains in the overnight trade on Wednesday.
Global oil benchmark Brent crude slipped 0.09 per cent to $81.53 a barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they sold shares worth Rs 3,929.60 crore, according to exchange data.
Meanwhile, Indian rupee consolidated in a narrow range and fell by 2 paise to close at 83.04 (provisional) against the US dollar on Thursday, tracking a strong American currency and elevated crude oil prices in the global market.
At the interbank foreign exchange market, the local unit opened at 83.00 and finally settled at 83.04 (provisional) against the dollar, down by 2 paise from its previous close.
During the day, the rupee saw a range-bound movement. It saw an intra-day high of 82.99 and a low of 83.04 against the US dollar. On Wednesday, the rupee appreciated 6 paise to close at 83.02 against the US dollar.