Some volatility towards the close, saw the Sensex slip to the day's low of 10,057, before bouncing back to a new all-time intra-day high of 10,122.
The index finally closed with a gain of 66 points at 10,111.
The Nifty gained 19 points to close at 3,028.
Ranbaxy soared 6.5% to close at Rs 433. Cipla gained 1.6% at Rs 562. Dr.Reddy's, too, was up over 1% at Rs 1,205.
HLL surged 5.6% to Rs 208. ITC moved up 2.8% to Rs 163.
Larsen & Toubro rallied 5% to Rs 2,313. Grasim spurted 2.2% to Rs 1,574. HDFC added 2% to Rs 1,370.
Hero Honda zoomed 4.3% to Rs 923. Tata Motors, Maruti and Bajaj Auto closed with marginal gains today.
Satyam advanced 3.3% to Rs 757. Wipro added 1% to Rs 513. While TCS closed flat at Rs 1,669, Infosys declined 1.4% to Rs 2,863.
Reliance Energy moved up 1.8% to Rs 610, and Tata Power gained 1.5% at Rs 505. NTPC, however, dropped 1% to Rs 121.
ICICI Bank dropped 2.3% to Rs 603. Bharti Tele slipped 1.8% to Rs 364. ACC slipped 1.6% to Rs 589.