The Sensex was trading with gains of 124 points, while the Nifty rallied 37 points in trade at 7911 points. Leading the set of gainers from the Nifty were the metal pack led by Sesa Sterlite, Hindalco and Tata Steel.
Shares in HCL Tech were up after the company said that it had bagged a contract. Nifty stocks that lost ground in trade were HDFC, Power Grid, Cipla and TCS.
Bhushan Steel continued to trade lower and was locked at the lower end of the circuit filter as bankers worried that the Rs 40,000 crores lent to the company may turn bad.
BPCL was among the top Nifty gainers for a second day in a row, as crude prices continued to trade soft. PSU banking stocks which were hammered down recently saw some buying interest at lower levels. Notable gainers from the space were the likes of Canara Bank, Indian Overseas Bank, State Bank of India and Oriental Bank of Commerce.
Midcap stocks also saw some traction with notable gainers being Power Finance and HPCL. Meanwhile, markets in Asia were trading higher led by gains in the Shanghai Composite and the Japanese Nikkei.