The Sensex was higher by 66 points, 18,780 points, while the Nifty rallied by 20 points. Reliance Industries which reported net profits in line with expectations was trading higher by 1%, while Axis Bank which also reported a decent set of numbers was trading higher by more than 2%.
Shares of Karnataka Bank rallied more than 4% on reports that the bank was likely to be taken over by ICICI Bank.
Banking shares were in the limelight with most of the private sector and public sector banks in demand, ahead of their results.
Shares of Claris Life Sciences rallied following reports that Mitusi may invest in the company. The top gainers from the S&P CNX Nifty were Wipro, Maruti Suzuki and Bhel. On the other hand stocks that lost ground in trade were Hindustan Unilever, BPCL and HDFC Bank.
Tata Motors shed more than 1% in early trade following its global sales dropping by 4%.
Meanwhile, shares in Asia opened higher following strong closings in the US and Europe. Markets are expected to remain choppy going forward and are likely to track global markets.