Among the early gainers was ICICI Bank which jumped more than 1 per cent and Bharti Airtel which also gained more than 1 per cent.
Software stocks, however, lost some ground with TCS trading in the red, while Wipro and Infosys were trading almost unchanged.
IDFC was the star performer in trade today and was up 4 per cent after the Election Commission gave its go ahead for issue of banking licences.
L&T finance Holdings and LIC Housing were also trading higher on hopes of a banking license. Axis Bank was trading weak after the RBI said that FIIs would not be allowed to buy shares in the company following the FII limit being breached.
Shares in BPCL were trading higher despite a hold on further diesel price hikes. PSU Banks once again saw some buying support in trade with prominent gainers being Indian overseas Bank and Andhra Bank.
Among the Nifty losers in trade were Jindal Steel, ITC and Coal India. Midcap stocks were having a good day in trade with IFCI rallying almost 4 per cent on hopes of a banking license. Other winners in trade were Voltas, Petronet LNG and Crompton Greaves.
Meanwhile, markets across Asia were trading with strong gains following a fresh high for the S&P 500.