Sensex surged in noon trades on a sharp short covering rally ahead of the expiry of the futures and options.
The Sensex was trading higher by 304 points, while the Nifty gained 90 points on the back of a recovery in the Asian markets and also on a recovery in the rupee.
HDFC which has been hammered in the last few trading days was the top gainer from the Nifty jumping more then 6 per cent. Other Sensex gainers were ICICI Bank, Larsen and Toubro, Reliance and Bharti Airtel.
Top losers not surprisingly were IT stocks which fell on the back of a gaining rupee. Infosys led losses on reports of a exit of one of its top management and a member of the board.
FMCG stocks which were trading lower in morning trades saw a sharp recovery with ITC and Hindustan Unilever trading with gains. Banking stocks saw the sharpest rally in trade on hopes that a falling rupee would cool bond yields and increase bond prices.
Top gainers from the space were Yes Bank which rallied almost 3 per cent, while other notable gainers were HDFC Bank and IndusInd Bank.
Realty stocks were having a good day of trade with gainers including Unitech, Sobha and HDIL. Ranbaxy which rallied sharply by more then 10 per cent in trade on Wednesday was trading marginally lower.
Meanwhile, markets in Asia were mostly trading higher as markets digested the news of a military strike in Syria. The Taiwan Weighted and the Korean Kospi gained more then 1 per cent each.