The Sensex rose by 47.04 points, or 0.24 per cent to 19,608.08, after moving between 19,723.01 and 19,574.15. The index had gained over 100 points in the previous session.
Similarly, the wide-based National Stock Exchange index Nifty rose by 10.45 points, or 0.18 per cent, to 5,932.95 as the major software exporter Tata Consultancy Services hitting a record high. Shares of TCS rose 1.58 per cent to close at Rs 1,430.55 apiece.
Brokers said trading sentiment improved following reports the exports grew by a marginal 0.82 per cent in January to USD 25.58 billion after contracting for eight straight months.
They said while most Asian markets were closed for Lunar New Year holidays, a better opening in Europe further supported the market sentiment.
In 30-BSE index components, 13 stocks gained led by two most heavy with their 16 per cent weightage on the Sensex - Reliance Industries and Infosys.
Reliance Industries rose by 0.26 per cent to Rs 878.25 and Infosys by 1.26 per cent to Rs 2,789.30. Tata Motors surged by 2.11 per cent to Rs 304.60 after Jaguar Land Rover reported 32 per cent increase in global sales in January.
The IT sector gained the most by rising 1.29 per cent to 6,497.79 followed by teck index by 0.98 per cent to 3,807.80.
Auto sector index rose by 0.26 per cent to 10,952.75 and oil and gas index by 0.12 per cent to 9,148.29.