The Sensex and the Nifty rallied in trade led by banking stocks which gained in early trade. Leading the set of gainers from the Nifty and the Sensex were stocks like ONGC, Larsen and ITC.
HDFC Bank gained ground after reports that The Foreign Investment Promotion Board has cleared HDFC Bank's proposal to raise Rs 10,000 crore. The stock was up 1.48 per cent in early trade.
Software stocks were having a weakfish day in trade with Infosys, TCS and Wipro among the early losers.
Other stocks that lost ground in trade were Sun Pharma, Hindalco and ICICI Bank.
Tata Chemicals was up after reports that the company was aiming for a turnover of Rs 30,000 crores over the next five years.
Bajaj Auto was up after the company bagged an order from the Sri Lankan government. Mid cap stocks were also having a good day in trade with stocks like IGL and UPL among the early movers.
Meanwhile, most of the Asian markets were trading higher led by gains in the Singapore's Strait Times and the Korean Kospi.