Firm buying in healthcare, FMCG, auto, financial and technology counters supported the recovery, but selling in index-heavyweights Infosys, which got its first outsider CEO in Vishal Sikka, Bharti Airtel and ICICI Bank capped gains.
Trading resumed on a positive note as retail investors lapped up shares though global cues were less supportive.
However, the market turned choppy following bouts of profit taking in mid-afternoon which sent the key index Nifty below the 7,600 level briefly.
The much-awaited Index of Industrial Production (IIP) data for April and inflation based on the combined consumer price index (CPI) were announced after trading hours. They will give the next direction to the market, a trader said.
Meanwhile, other Asian markets ended lower as investors stepped back after recent global rally amid concerns over World Bank's decision to lower global growth forecasts as well as nervousness about the ongoing developments in Iraq.
The 50-share Nifty hovered between a high of 7,658 and low of 7,593.80 before concluding at 7,649.90, posting a rise of 23.05 points, or 0.30 per cent.
Hindalco Industries topped the buying list, surging 4.06 per cent. Other smart movers in the Nifty included Sun Pharma, Power Grid, HDFC Bank, HDFC, Jindal Steel, NTPC, DLF, Maruti and TCS.
Top losers included Bharti Airtel, Axis Bank, Bank of Baroda, Coal India, BPCL, Tech Mahindra, Ambuja Cement, Infosys, BHEL and Sesa Sterlite.
Turnover in the cash segment dropped to Rs 18,474.97 crore as compared to Rs 24,638.79 crore yesterday. A total of 11,997.33 lakh shares changed hands in 82,55,529 trades, while the market capitalisation stood at Rs 88,02,957 crore.