The gains were led by healthcare, capital goods, banking and metal sector stocks.
ICICI Bank, Sun Pharma and Larsen & Toubro helped to lift the index even as ONGC and Hindustan Unilever dragged it lower. Jindal Steel, Wipro and BHEL were among the top gainers.
The 30-share S&P BSE Sensex resumed on a lower note and hovered in a range of 20,770.51 to 20,941 before ending at 20,898.01, up 106.08 points or 0.51 per cent. It was the third day of gains for the index, which is at the highest level since the November 5 close.
The 50-share CNX Nifty on the National Stock Exchange surged 41.75 points, or 0.68 per cent, to 6,217.85. The SX40 on the MCX Stock Exchange ended at 12,375.76, up 31.27 points.
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