The Sensex and the Nifty opened the day higher with shares of IT companies seeing strong gains led by Infosys. The Sensex was up 232 points as global cues remained strong. The Nifty was trading with gains of 63 points at 8428 points.
Banking stocks saw good buying support with ICICI Bank up one per cent in early trade and other PSU banks like State Bank of India, Bank of India and Federal Bank also among the gainers.
Investors are betting on banking stocks ahead of the RBI's policy meet on June2, in which a rate cut is widely expected.
Tata Steel, Coal India and Hindalco Industries were the only stocks from the Nifty that lost ground. Mid cap stocks were also having a good session in line with the broad markets. Century Textiles and Wockhardt gained almost 3 per cent in trade.
Pidilite Industries saw some selling pressure after its results failed to meet expectations. Reliance Infra and RCOM were the other losers in trade.
Meanwhile, markets across Asia were trading with gains after record closing for the Dow Jones in the US. The Shanghai Composite, the Japanese Nikkei and the Korean Kospi were all higher.