The Sensex and the Nifty rallied in trade for the second straight day as global cues remained strong after the US Dow Jones surged a huge 400 plus points.
The Sensex was trading with gains of 274 points, while the Nifty rallied 77 points in early trade. Leading the set of gainers from the Nifty and the Sensex were metal stocks once again with Hindalco, Sesa Sterlite and Hindalco leading gainers.
HDFC Bank was up 1 per cent after reports that it was seeking shareholders nod to raise money. Software stocks like TCS, Infosys and HCL were trading higher after Accenture posted a good set of results.
Mid cap stocks also saw some buying interest in early trade with Havells India, Crompton Greaves and Ashok Leyland among the gainers.
Meanwhile, markets across Asia rallied sharply in trade led the Japanese Nikkei and the Strait Times. Dealers say there could be some more steam left in the rally after the US Fed said that the hike in interest rates may not happen until the next few meetings of the US Fed.