The benchmark BSE Sensex failed to maintain its initial surge as it pared early gains, trading up by 185.41 points, on positive Asian cues amid optimism that the US Fed would keep key interest rate unchanged at the two-day policy meet starting today.
The broader Nifty was higher by 48.80 points.
The trading pattern moved into a tight range amid volatility as bouts of buying in healthcare, IT, technology, banking, FMCG and auto sectors propped up the market.
Consumer durables, capital goods, power, realty and metal counters came under selling pressure.
The Sensex resumed gap-up at 25,884.05 before quoting at 25,891.34 at 1150 hours, a gain of 185.41 points, or 0.72 per cent.
The 50-share Nifty was also up 48.80 points, or 0.62 per cent, at 7,877.90 at 1150 hours.
Hero MotoCorp led the pack (up 2.44 per cent) as Sun Pharma, Bajaj Auto, Bharti Airtel and Axis Bank registered gains too.
BHEL, NTPC, HUL and L&T were in the red.
Meanwhile, foreign portfolio investors (FPIs) net sold Rs 910.85 crore worth of shares yesterday, according to provisional exchange data.
Major Asian markets were ruling firm buoyed by impressive gains in US stocks overnight.
China's Shanghai Composite, and other premier indices of South Korea, Hong Kong, Singapore and Japan surged up to 2.06 per cent.
However, Indonesian stocks traded down 0.17 per cent.
