The BSE Sensex rose by 33.29 points, or 0.09 per cent, to close at 35,962.93, while the Nifty settled at 10,805.45, up 13.90 points, or 0.13 per cent.

Riding high on media report, shares of the bank gained as much as 2.91 per cent to touch an intra-day high of Rs 179.80 apiece on the Bombay Stock Exchange, after opening marginally lower at Rs 173.00.

Top Sensex gainers were Bharti Airtel (2.66%) , YES Bank (1.52%) and Asian Paints (0.95%). Adani Ports (0.75%), Maruti (0.63%) and HeroMotoCorp (0.64%) were the top Sensex losers.

While benchmark US crude oil price jumped 2.8 percent to $52.58 per barrel, brent crude rose 2.2 percent to $61.45 per barrel.

The hunt for a new chief executive began after the RBI refused another term to the incumbent Rana Kapoor citing \"serious lapses\" in governance and a \"poor compliance culture\" at the bank.

It hit an intra day high of 194.30 or a gain of 4.01% in trade today.  However, the stock saw profit booking at higher levels and pared all gains made during the day to close in the negative territory.

The BSE SENSEX closed at 35,929.64, up by 150.57 points, or by 0.42 per cent, and the NSE Nifty ended at 10,791.55, up by 53.95 points, or by 0.50 per cent.

Recovery in rupee and positive cues from other Asian markets too influenced investor sentiment. Rising for the third straight session, the 30-share index was trading higher by 263.70 points, or 0.74 per cent, at 36,042.77.

Sameet Chavan, Chief Analyst, Technicals and Derivatives at Angel Broking, takes viewers through all the market action today. The Sensex and Nifty closed higher today a day after Congress defeated BJP in three key states of Chhattisgarh, Rajasthan and Madhya Pradesh and the government announced Shaktikanta Das as new RBI governor.

The Sensex has jumped 819 points in the last two sessions signalling positive outlook for the market in the near term.

The expectations of higher spending on farmers and agriculture-related activities by the newly formed state governments in Chhattisgarh, Madhya Pradesh and Rajasthan to fulfil their electoral promises and hopes from the Narendra Modi govt to address farmers' concerns ahead of the Lok Sabha elections led to a rally in two-wheeler and rural theme-based stocks.

The stock fell 5.16% intra day to 2569 level on the BSE. The large cap stock has fallen after two days of consecutive gain. On NSE, the stock fell 5.45% to 2,568 level. The stock was the top loser on Nifty.

The mid cap and small cap indices were trading 1.18% and 1.38% higher in early trade. Market breadth was positive with 1,303 stocks rising compared to 308 falling on the BSE.