Leading the Nifty set of gainers was Reliance Industries which rallied more than one per cent. Bharti Airtel which reported a good set of Q4 numbers was also trading higher with gains of one per cent.
Banking stocks saw a sharp rally in trade with notable gainers being IndusInd Bank, State Bank of India and Canara Bank. Kotak Bank and IDBI Bank were both trading higher ahead of their results to be declared later today.
Among the few Nifty stocks that declined in trade were Sun Pharma, Sesa Sterlite and Coal India.
Mid cap stocks were also have a good run with Voltas, HPCL and Ashok Leyland among the gainers. However, Mcleod and CESC declined in trade.
The stock of Tata Sponge Iron rallied as much as 9 per cent after the company's consolidated net profit jumped. Mid cap IT stock Hexaware continued its decline for a second day in a row following a poor set of results reported on Tuesday.
Realty stocks were trading flat after seeing heavy buying interest in the last few weeks.
Meanwhile, markets across Asia saw a rally after the US markets closed significantly higher. Among the gainers were the Japanese Nikkei and the Jakarta Composite.