In choppy trade, the BSE benchmark index traded in a 130-point range before closing at 16,906.58, up 24.42 points.
On similar lines, the 50-share National Stock Exchange index Nifty advanced 6.15 points, 0.12 per cent to 5,120.80.
Shares of refinery, power, PSU and healthcare firmed up while consumer durable and FMCG stocks declined.
Brokers said the refinery stocks attracted investor interest as the fall in crude oil prices might help ease the burden of selling fuels at subsidised rates.
Sensex heavyweight Reliance Industries rose 1.05 per cent, Oil India gained 1.50 per cent and HPCL jumped 2.36 per cent.
In London, Brent crude for August delivery was trading at USD 91.43 per barrel on the ICE Futures exchange.
Out of the 30-share Sensex, 20 counters including Gail, Tata Power, ONGC and TCS gained while 10 counters including Hindustan Unilever, Sterlite Industries and ITC declined.
The market breadth continued to remain positive as 1,383 shares ended with gains while 1,355 finished with losses.
Ahead of expiry of this month's derivative contracts on Thursday, sentiment in Indian stocks was cautious amid subdued sentiment over the recent RBI measures to prop up the rupee.
"Markets opened on a neutral note on mixed global cues. It was a choppy session ahead of derivative expiry on Thursday," said Shanu Goel, Senior Research Analyst, Bonanza Portfolio.
Dealers said investors now await the government and RBI's future measures to boost the economy and stem the rupee slide.
Globally, the trends in Asian markets were negative while European indices were trading mixed in early trade. Indices in China, Singapore, Japan, Taiwan and South Korea were down by 0.09 per cent to 0.81 per cent. (MORE)
