Among the major gainers in trade today were the rate sensitives which rose on hopes of a repo rate cut by the Reserve Bank of India.
In Europe shares were trading higher after a flattish close on Tuesday. The UK's FTSE, the German DAX and the French CAC were all trading higher. In Asia shares closed lower following weak overnight cues from the US.
The IIP data which came in at 0.1% for April triggered the rally in stocks which were trading lower until the data was released by 11.00 am.
Among the shares that gained in trade today were Sterlite Industries, State Bank of India and Larsen and Toubro. The rally on the bourses is likely to continue given that fresh long positions that are accumulating ahead of the RBI meet on June 18.
Hopes that the Greece election outcome would favour pro austerity parties also helped sentiments today. Greece elections are likely to be completed on June 17, 2012.