At 9.35 am IST, the Sensex was trading at 17,233 points, up 240 points. The Nifty was seen trading higher by 69 points at 5,217 points.
Asian Peers reversed early loses and was seen trading positively, the Nikkei 225 was seen trading up by 1.06%. The Hang Seng was higher by 1.93% and Shanghai was up by 0.71%.
P notes are instruments that are used by foreign institutional investors to investment in India, through tax saving haven like Mauritius. There were fears that Pranab Mukerjee's budget which had GAAR provisions would bring P-notes under the tax ambit.
It is a major relief to foreign institutional investors investing in Indian equities through P Notes, the income-tax department has spared these notes from the GAAR provisions.
On the sectoral front on BSE, all the sectors were trading positively. Consumer Goods, FMCG, Power and Bankex leading the rally.
Among the shares that gained ground in morning trade were Sun Pharmaceuticals, Maruti Suzuki, Tata Power and ICICI Bank.
The only stocks that failed to lure investors in early trade were Cairn India and BPCL.