The Sensex closed higher by 66.12 points at 26220.95 and the Nifty gained 2 points at 7,950.90
Markets closed marginally higher on the first day of Q3 FY16, amid positive global cues, led by IT majors Infosys and TCS
Markets made a strong opening tracking firm global cues. However, they could not hold to their gains post the announcement of Indian manufacturing activity which slowed more than expected to a seven-month low in September due to softening demand and output, a business survey showed on Thursday.
The broader markers performed in line with the benchmark indices- BSE Midcap and Smallcap indices were up almost 0.2% each. Market breadth was neutral on the BSE with 1,365 advances and 1,321 declines.
Indian stock markets will remain closed on tomorrow, 2 October 2015, on account of Gandhi Jayanti.
In the currency front, the rupee appreciated by 4 paise to 65.62 against the dollar on sustained selling of the American currency by exporters and banks amid increased foreign fund inflows.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 116.08 crore yesterday, as per provisional data released by the stock exchanges.
Further, IMF chief Christine Lagarde has said that India remains a bright spot in the world economy amid sluggish global growth this year with only a modest acceleration expected in 2016.