Among stocks, Zee Entertainment gained by 6.84 per cent at Rs 328 per share following reports that the parent Essel Group is planning to sell 16.5 per cent stake in the subsidiary company to financial investors. The group plans to repay loan obligations to certain lenders.

State Bank of India gained by 2.9 per cent to trade at Rs 314.90 per share while ICICI Bank and Kotak Mahindra Bank were up by 0.8 per cent each. The other prominent gainers included Bharti Infratel, Bharti Airtel, Maruti, Tata Steel and Hindustan Lever.

Among stocks, Bharti Infratel fell by 7.2 per cent at Rs 202.50 per share while Bharti Airtel was down by 3.1 per cent. IndusInd Bank slipped by 3.5 per cent, State Bank of India by 1.3 per cent, Tata Motors by 2 per cent and Britannia by 1.6 per cent.

US President Donald Trump said a day earlier that a trade deal with China was close but gave no new details on when or where an agreement will be signed.

Hong Kong's Hang Seng index led the losses and was down by more than 1 per cent after police fired live rounds at protestors on the eastern side of Hong Kong island.

MSCI's gauge of stocks across the globe rose slightly to stand at 543.70 while Tokyo's Nikkei jumped 0.75 per cent to a 13-month high.

Private lender IndusInd Bank gained by 2.5 per cent to Rs 1,376.25 per share. Housing finance company HDFC was up by 1.5 per cent while State Bank of India ticked up by 1 per cent.

Sensex closed 222 points or 0.55 per cent higher at 40,470 while the Nifty 50 moved up by 44 points to 11,961. Most sectoral indices at the National Stock Exchange were in the green except for Nifty auto, PSU bank and media.

Among the gainers were pharma majors like Cipla, Dr Reddy's and Sun Pharma besides Yes Bank, Mahindra & Mahindra, Tech Mahindra, Coal India and Bharat Petroleum Corporation.

MSCI's broadest index of Asia Pacific shares outside Japan ticked up by 0.1 per cent after hitting a four-month high the previous day.