However, heavy selling pressure was observed in healthcare, capital goods and fast moving consumer goods (FMCG).
The 30-scrip Sensitive Index (Sensex) of the S&P BSE, which opened at 26,275.07 points, closed trade at 26,384.07 points, up 86.69 points or 0.33 percent from the previous day's close at 26,297.38 points.
The Sensex touched a high of 26,443.16 points and a low of 26,092.69 points in the intra-trade.
According to Angel Broking, the Indian markets opened negatively tracking SGX Nifty and Asian markets. The US market ended on negative note owing to European growth concerns which led to global negative sentiment.
"European markets closed in the negative territory on Friday, extending this month's steep losses on concerns that the European Central Bank will dither as Germany heads for recession," the broking firm said.
The S&P BSE bank index was up 238.62 points, followed by metal index which was higher by 149.48 points and IT index rose 124.46 points.
However, healthcare index was down 143.11 points, followed by capital goods index which lost 72.38 points and FMCG index declined by 39.52 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also closed trade in positive territory. It gained 24.30 points or 0.31 percent at 7,884.25 points.
The major Sensex gainers were: Tata Power, up 2.90 percent at Rs.85.10; Tata Steel, up 2.14 percent at Rs.457.80; Coal India, up 1.91 percent at Rs.340.95; Axis Bank, up 1.90 percent at Rs.386.45; and Tata Consultancy Services (TCS), up 1.54 percent at Rs.2,720.35.
The losers were: Mahindra and Mahindra, down 3.66 percent at Rs.1,270.10; Cipla, down 2.68 percent at Rs.576.30; Sun Pharma, down 1.86 percent at Rs.803.55; DrReddy, down 1.76 percent at Rs.2,947.20; and BHEL, down 1.29 percent at Rs.218.
Among the Asian markets, Japan's Nikkei closed 1.15 percent down, while Hong Kong's Hang Seng lost 0.24 percent. Shanghai Composite Index, too, was lower by 0.36 percent.
In Europe, London's FTSE 100 was trading 0.18 percent up. Germany's DAX Index was higher by 0.43 percent and the French CAC 40 Index rose by 0.60 percent at the closing bell here.