Banking stocks which are directly impacted by the Monetary Policy were ruling higher. ICICI Bank, IDBI Bank, State Bank of India, Federal Bank and Yes Bank were among the gainers in trade.
Other stocks that gained ground in trade were Mahindra and Mahindra and Larsen and Toubro. Shares in Hero Motor Corp were trading higher ahead of the company's results to be declared later today. ONGC was the top Nifty gainer in trade today.
Mid cap stocks were also having a good session in trade with notable gainers being Divis Labs, Sun TV Network and Steel Authority of India.
PSU banking stocks were also having a good session with notable winners being IDBI Bank, Bank of India and Andhra bank.
Real estate stocks saw some pressure in trade after The Competition Commission of India (CCI) asked 20 leading builders to respond to findings by its investigation arm that they engaged in unfair trade practices.
Shares in Tata Communications lost ground after the company reported a loss for the quarter ending June 30, 2014.
Meanwhile, markets in Asia were trading steady with notable winners being the Shanghai Composite and the Hong Kong's Hang Sang.