The Sensex was trading higher by a staggering 282 points, led by a 7 per cent rally in ONGC and 4 per cent rally in Reliance following a gas price hike by the government.
The other notable gainers were from the auto and two wheeler space including Tata Motors and Bajaj Auto, which both rallied more then 3 per cent.
Software stocks were weak in trade today following notable gains in the Indian rupee. Among the losers from the space were TCS, Infosys and HCL Technologies. Other Nifty losers were Hindustan Unilever.
Banking stocks were in the limelight with notable gainers from the space being Asix Bank, HDFC Bank, ICICI Bank and State Bank of India.
The high beta realty pack also gained with HDIL, Indiabulls and Oberoi Realty gaining 3 per cent each. Bharti Airtel was higher despite reports that the copany had lost the bid for a license in Mayanmar.
Bajaj Finance surged more then 4 per cent after reports that it plans to convert Bajaj Finserv into a bank.
Meanwhile, markets in Asia were trading significantly higher with the Nikkei jumping more then 3.5 per cent.