The Sensex gained 158 points, while the Nifty rallied 44 points in trade. The star performer from the Nifty was Infosys, which rallied 4% on better guidance and brokerage upgrades, following its Q2 numbers.
Other IT stocks joined Infosys higher with Wipro gaining 2 per cent, HCL tech gaining 2 per cent and TCS rallying 1 per cent.
Pharma stocks joined the party with Ranbaxy trading higher by 5%, while other notable gainers were Cipla and Dr Reddys.
Notable losers from the Nifty in trade today were Grasim, Hindalco, ITC and Lupin. Banking stocks were having a quiet day of trade ahead of the IIP and CPI date due later today.
ICICI Bank, Punjab National Bank, Yes Bank and Canara Bank were marginally up in trade. State Bank of India was also trading higher after reports that the bank is likely to get an approval for its proposed QIP.
Mid cap stocks were also higher in trade today with the mid cap index gaining around 0.5%. Among the gainers from the space were Ashok Leyland, HDIL and Voltas.
Notable losers were United Phosphorus and Steel Authority of India.
Meanwhile, markets across Asia were trading higher on reports that a US debt deal would be agreed between the US House Republicans and Democrats.
The Japanese Nikkei rallied 1.15 per cent in trade, while the Seoul Composite was also up 1 per cent in trade.