The Sensex and the Nifty gained ground in trade on strong global cues, breaking a three day losing streak as the Korean central bank cut interest rates.
The Sensex was trading higher by 225 points, while the Nifty rallied 65 points in trade. Leading the set of gainers in trate today were NTPC, which rallied a huge 3 per cent, while other notable Nifty winners were Sesa Sterlite, Tata Steel, HDFC and BHEL.
PSU banking stocks saw a sharp rally in their share price following a review of the non performing assets and capital raising plans for seven of these banks. Punjab National bank, State Bank of India, Syndicate Bank, Canara Bank and Bank of India were among the gainers in trade.
Other private sector bank stocks also gained ground on hopes that inflation data due later today further eased, thus raising hopes of another interest rate cut.
Jindal Stainless surged a huge 13 per cent on reports of anti-dumping duty recommended by the Trade Ministry.
Meanwhile, markets across Asia rallied following goods job data from Australia and a surprise rate cut from the Korean central bank. The Shanghai was up more then one per cent, while the Japanese Nikkei and the Straits Times also gained.