The 30-share Sensex ended up 44 points at 19,392 and the 50-share Nifty ended up 11 points at 5,900.
Investors were cautious ahead of the outcome of Parliament voting on foreign direct investment (FDI) in multi-brand retail in Wednesday's session after Prime Minister Manmohan Singh's minority United Progressive Alliance government bowed to opposition pressure last week ending days of deadlock in Parliament.
The Sensex saw a high of 19,463 and a low of 19,371 and the Nifty swayed between 5,891 and 5,918.
Meanwhile, India's services Purchasing Managers' Index, fell to 13-month low of 52.1 in November from October's 53.8, data showed on Wednesday.
Global risk appetite was firm after China's Communist Party's new leaders said it would actively promote urbanization amid hopes of resolution in US budget talks.
In Asia, Japan's Nikkei average rose to a seven-month closing high on Wednesday, lifted by sharp gains in Chinese equities.
The Nikkei ended 0.4% higher at 9,469.Among the other major gainers were Shanghai Composite, Hang Seng up 2-3%.
European shares continued their recent rally on Wednesday after comments from China's new leader boosted global growth expectations.
London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX showed gains of 0.5-0.6%.
Among the sectoral indices, Realty, Metal were the top index gainers, up 2-3% followed by Oil & Gas, Bankex and PSU indices which added 0.5-0.7%.
Metal shares gained on reports of higher demand from China, the world's largest consumer of copper and aluminum. The top gainers were Sterlite, Sesa Goa, Hindalco, JSW Steel, Tata Steel and SAIL which gained 2-5%.
Apart from the metals, SBI, Tata Motors, HDFC Bank, ITC, Hero MotoCorp, Reliance Industries and ONGC up 1% each were the notable gainers.
On the other hand, IT, Power and Health Care closed for the day in the red losing 0.5-1%.
Indian IT shares were in the red on fears that Cognizant Technology Solutions Corp may issue lower revenue growth guidance for 2013
Markets ignore poor growth; Sensex up 169 points
Pratip Chaudhuri: SBI's CONSCIENCE keeper?
Why Wipro's demerger is GOOD for investors
Four in the fray for top job at Tata Steel
Foreign bank threatened PSU insurer over ships from Iran