Higher Asian shares offered positive cues, but worries over weak quarterly results remained. Mood brightened after core sector growth rose to a 4-month high of 3.2 percent in September, brokers said.

Moody's Investors Service yesterday said the economy would grow at 7.5 percent in the current fiscal and improve marginally in the following year, which too spread cheer.

It upgraded its credit outlook on India’s banking system to 'stable' from 'negative', which came as a big positive. The 30-share Sensex swung heavily, before settling at 26,590.59, up 31.44 points, or 0.12 percent.

The gauge had lost 911.66 points in the previous six straight sessions on sustained foreign fund outflows amid muted Q2 earnings and a weak trend overseas.

The broad-based NSE Nifty also ended marginally higher by 9.90 points, or 0.12 percent, at 8,060.70 after breaching the crucial 8,100-level.

"Indices snapped its past losing streak on the back of strong global indices and improved core sector growth. However, these couldn't sustain the gains as investors await the results of Bihar elections and continued selling by foreign investors weighed," stated Gaurav Jain, Director, Hem Securities.

Brokers said investors resumed buying in battered blue-chips that turned attractive after a set of positive economic data, including those on core sector growth.

 NTPC surged the most rising 2.15 percent, followed by M&M, ONGC and Hindalco. Sectorally, IT surged the most by rising 0.91 percent, followed by oil and gas, PSU, power and healthcare.

In broader markets, small-cap and mid-cap indices ended with gains up to 0.39 percent as investors widened bets. Meanwhile, foreign portfolio investors (FPIs) net sold shares worth Rs 272.67 crore yesterday, provisional numbers showed.

Indices in other Asian markets, including those in Hong Kong and Singapore were higher, while Shanghai Composite declined 0.25 percent. Europe was trading mixed in early session.

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