Mumbai: June 02, 2010 - Indian markets ended a volatile session on a positive note on Wednesday, ignoring negative cue from Europe. The upmove was led by gains in telecom, auto and realty stocks.

Indices opened in the green and turned choppy due to lack of direction from subdued Asian markets. Lot of action was seen in telecom companies on reports that Reliance Communications was planning to sell part of its stake to Etisalat and also on reports of a possible merger with South Africa's MTN.

Benchmarks gained momentum in the last hour of trade and closed above psychological resistance levels even as Europe was witnessing selling pressure. Traders seem to have taken cues from the US stock futures which were indicating a positive start.

National Stock Exchange's Nifty ended at 5027.90, up 57.70 points or 1.16 per cent. The broader index touched intraday high of 5031.20 and low of 4967.05.

Bombay Stock Exchange's Sensex closed at 16771.31, up 199.28 points or 1.20 per cent. The index touched high of 16774.15 and low of 16571.45.

"Nifty has met our target levels around 4800. A break below it would mean downside till 4400-4300 which are Fibonacci wave targets and pattern targets respectively. But since daily momentum remains oversold a brief pullback cannot be ruled out. The extent of any such bounce seems to be capped at the 55DEMA at 5110 which also coincides with a trendline resistance," said Sarvendra Srivastava, technical strategist, Emkay Global Financial Services.

BSE Midcap Index gained 0.85 per cent and BSE Smallcap Index moved 0.79 per cent higher.

Amongst the sectoral indices, BSE Auto Index was up 1.74 per cent, BSE Realty Index gained 1.33 per cent and BSE Capital Goods Index moved 1.14 per cent higher.

Reliance Communications (12.32%), Idea Cellular (10.10%), Bharti Airtel (5.21%), Reliance Infrastructure (4.29%) and Ambuja Cement (3.88%) were the top Nifty gainers.

Suzlon Energy (-2.07%), Punjab National Bank (-1.20%), Wipro (-1.17%), Jindal Steel & Power (-1.14%) and ITC (-0.55%) were amongst the losers.

Market breadth was positive on the NSE with 1,817 advances against 1,240 declines.