Investors traded cautiously intra-day with key benchmark indices dropping nearly 0.4% tracking global markets after several Federal Reserve officials expressed concerns about continuing to expand stimulative bond buying in the Thursday's FOMC meet.
The 30-share Sensex of the Bombay Stock Exchange gained19.30 points to end at 19,784.08 and the 50-share Nifty rose 6.65 points to end at 6,016.15.
Oil companies rallied on reports the petroleum ministry has proposed a gradual rise in diesel prices, by 1 rupee a litre every month over a 10-month period.
Investors also bought IT stocks on hopes of better third quarter earnings. Infosys, the bellwether stock of the technology index, will release results on January 11.
Meanwhile, growth in the business activity in India's services sector is at a three month high in December, at 55.6 according to HSBC Services Business Activity Index. In November, the Index reading was 52.1.
Global risk appetite was, however, weak. Asian and European stocks traded on a negative note.
Hong Kong's Hang Seng declined 0.3% to 23,331, Taiwan's Weighted index fell 0.4% to 7,805, Singapore's Straits Times was down 0.06% to 3,222.
Equity markets in Japan and mainland China opened today with Shanghai Composite trading up 0.25% to 2,276 while Nikkei gained 2.8% to 10,688.
European indices such as France's CAC declined 0.2% to 3,713, Germany's DAX dropped 0.14% to 7,745 while France's FTSE shed 0.01% to 6,046.
In the currency market the dollar rose, hitting its highest since July 2010 against the yen at 87.835 while the euro fell to a three-week low of $1.3019. The dollar also touched a six-week
Markets end higher led by financials
Markets end lower on weak global cues
SILVER offered higher returns than gold in 2012
S&P pegs India's GDP growth at 6.5% in 2013
Markets end at 2-yr closing high