The Sensex was trading higher by 206 points, while the Nifty gained 60 points in trade. Leading the set of gainers from the Nifty were Gail, Hindalco, Larsen and Toubro, Tata Power and Tata Steel. Shares in Tata Motors was trading higher ahead of its results to be declared later today.
Adani Enterprises surged more than 4 per cent after the company reported a good upswing in profits. Early Nifty losers in trade were HCL Tech, Power Grid and Dr Reddy's.
Shares in IDBI Bank were weak after reports that the Central Bureau of Investigation has launched a probe into how IDBI Bank loaned Rs 950 crore to Kingfisher Airlines (KFA) despite the now grounded airline's negative net worth and negative credit rating.
Other PSU banking shares were trading higher led by gains in Allahabad Bank, Oriental Bank and Andhra Bank.
Mid cap stocks were also seeing some traction in trade with notable gainers being CESC, Godrej Industries and Unitech.
Realty stocks were in the limelight after reports that regulator Sebi said that norms for REITs would help entities with at least Rs 2 lakh investment to earn from completed real estate projects.
Meanwhile, markets in Asia were trading higher led by gains in the Japanese Nikkei, the Shanghai Composite and the Hong Kong's Hang Sang.