Inflation based on the wholesale price index fell to a five-month low of 2.17 per cent in May which lifted the investor sentiment, brokers said.
Investors, however, were cautious ahead of the US Federal Reserve's latest decision on interest rates later in the day, they said.
The 30-share Sensex resumed higher at 31,147.69 and hovered in a range of 31,190.36 and 31,054.94 before settling at 31,155.91, showing a gain of 52.42 points, or 0.17 per cent. The gauge had gained 7.79 points in the previous session.
The 50-share Nifty also ended higher by 11.25 points or 0.12 per cent at 9,618.15, after shuttling between 9,627.40 and 9,580.45.
Pharma major Cipla, FMCG giant ITC and HDFC Bnak were among the major losers falling up to 2.16 per cent.
Sector-wise, the BSE realty rose by 1.50 per cent, followed by capital goods 0.88 per cent, oil&gas 0.68 per cent, PSU 0.25 per cent, teck 0.24 per cent, IT 0.18 per cent, banking 0.10 per cent and consumer durable 0.08 per cent.
The broader market outperformed the key indices with the small-cap index rising 0.46 per cent and the mid-cap index up 0.01 per cent.
In the Asian region, Hong Kong's Hang Seng rose 0.09 per cent, while Shanghai Composite Index fell 0.73 per cent and Japan's Nikkei ended 0.08 per cent lower.
Europe's Frankfurt's DAX rose 0.56 per cent, while Paris CAC went up 0.93 per cent in their early trade.
London FTSE too up 0.44 per cent.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)