The stock market barometer 30-share Bombay Stock Exchange sensitive index or Sensex closed at 6,597.60, representing a gain of 32.23 points or 0.49 percent over its previous session's close.

Dealers said the market opened for the day on a cautious note as institutional investors adopted a cautious approach after the positive rally in the past four consecutive sessions.

The sluggish trading pattern on the bourses, however, didn't continue for long as fresh institutional buying interest emerged on select new as well as old economy counters.

Fund operators picked up heavyweight equities on company specific news and hopes that the country would get normal monsoon rains in the current year.

"The market is not showing any signs of correcting despite witnessing sustained hectic buying activity in the last few sessions," said an analyst with a domestic brokerage firm.          

"The trading pattern is mainly being influenced by projections about the country getting a normal monsoon this year. This has raised hopes of a sharply higher economic growth this year," added the analyst.

The June-September monsoon rains are very crucial for Indian agriculture, which accounts for one-fourth of the country's total economic output and provides employment to nearly 70 percent of the country's population.   
 
India's economy grew by 6.9 percent in the fiscal year ended March 31, 2005 on top of a higher increase of 8.5 percent in the previous year on increased agriculture production.

In the old economy sector, shares of Ranbaxy Laboratories, India's largest pharmaceutical company by sales, rose 3.7 percent to Rs.1,040 after the company Tuesday announced the launch of anti-infection tablets in the US.

State Bank of India, the country's biggest commercial bank, gained 2.2 percent to touch Rs.677.30 on reports that it plans to raise $600 million through foreign bonds to fund its overseas expansion.

In the technology sector, shares of Infosys Technologies, the second largest software exporter, ended 0.1 percent higher at Rs.2,159.90 on sustained institutional buying interest.