The Nifty ended the day higher by 35.5 points, while the Sensex gained 130 points in trade today. Among the Nifty gainers which saw a sharp rally were Larsen and Toubro, Bharti Airtel, Jaiprakash Associates, ONGC, IDFC, Mahindra and Mahindra and DLF.
Nifty stocks that lost ground in trade today were Ranbaxy Laboratories, which slid more then 3.56 per cent following a poor set of quarterly numbers. Other stocks that saw declined were GAIL, HDFC Bank, Tata Motors, Grasim, Cairn India, Dr Reddy's and Siemens.
Technology stocks which rallied in trade on Tuesday exhibited a weak trend with TCS, Infosys and HCL Technology declining in trade.
Among non index stocks Fairfield Atlas rallied 5 per cent after the board approved delisting of company's shares from BSE.
Jet Airways rallied 18 per cent after reports that the company has sold and leased back Heathrow slots to Etihad.
PSU banking stocks which witnessed a rapid decline on Tuesday saw some buying support emerge with Allahabad Bank, Union Bank of India, Oriental Bank and Bank of Baroda bouncing back smartly.
Realty stocks also saw buying interest on hopes that there would be something from the Budget for the sector, particularly home loans. HDIL, Unitech and DLF Realty all gained in trade today.
Meanwhile, markets in Asia ended the day higher following hopes that Ben Bernanke would continue his stimulus programmes in the US. European markets were also trading higher with the German DAX, French CAC and the UK's FTSE higher in trade.
Markets are now eagerly awaiting the Union Budget 2013 to be delivered on Friday, which is likely to determine the market trend in the short term.