Mumbai, Aug 23 (IANS): Positive global cues along with healthy buying in IT stocks lifted India's key equity indices on Monday.

Initially, market indices opened a gap up in line with gains in the Asian markets. However, the two key indices fell post the morning sessions' rise before recovering later.

Sector-wise, IT, oil and gas and financial services made gains, but all the other sectors were in the red.

The volatility index, India VIX, was down 2.4 per cent at 13.69 levels.

Consequently, the S&P BSE Sensex rose to 55,555.79, higher by 226.47 points or 0.41 per cent from its previous close.

Similarly, the NSE Nifty50 closed at 16,496.45, higher by 45.95 points or 0.28 per cent from its previous close.

"On a day when volumes on the NSE were in line with recent averages, the IT sector gained the most, while auto and consumer durables lost the most. The broader indices underperformed the Nifty with the S&P BSE midcap slipping 1 per cent and the S&P BSE smallcap shedding 1.65 per cent," said Deepak Jasani, Retail Research Head, HDFC Securities.

"Investments in the Indian capital markets through participatory notes rose to Rs 1.02 lakh crore till July-end, making it the highest level in last 40 months," he said.

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Domestic indices opened on a positive note led by buying interest seen in quality large cap stocks. The markets snapped last two day's fall to end in green.

"On stock specific front, HCLTech, TCS, NestleInd, Bajajfinserv and ONGC were the top gainers while Grasim, Adaniports, M&M, Eichermot and Bajaj-Auto were the top laggards."

S. Ranganathan, Research Head, LKP Securities, said: "As indices ruled firm on the back of IT stocks, several midcap names across sectors were seen wilting under selling pressure in late afternoon trade with the QSR basket too meeting with profit booking."