Markets opened the day higher ahead of April futures and options expiry with the Sensex gaining 130 points in trade, while the Nifty was higher by 41 points.
Among the top gainers in trade today was non-index stock Jet Airways which soared 13 per cent, following a stake sale to the Abu Dhabi based Etihad Airways.
Notable Nifty gainers in trade today were Bajaj Auto, Grasim, Gail, Dr Reddy's, Housing Development Finance Corporation and ICICI Bank.
Axis Bank saw buying support after the company reported better then expected results, while HDFC Bank was also trading firm after reporting a good set of numbers.
Idea Cellular was trading higher ahead of its results to be declared later today. Software stocks continued to languish with Tata Consultancy Services, HCL Tech and Infosys Technologies all trading lower.
PSU Banks continued to find buying support with notable gainers in trade including State Bank of India, Union Bank of India, Allahabad Bank and Canara Bank.
Realty stocks also gained on hopes that the RBI would cut rates in its forthcoming policy meeting. Notable gainers from the space were Anant Raj, DB Realty, DLF and Unitech.
Energy and OMC stocks continued to rally on the back of lower crude prices. Reliance Industries led gainers with Cairn India, Oil and Natural Gas Corporation and BPCL among the other gainers.
Meanwhile, markets in Asia were trading higher, once again led by strong gains on the Japanese Nikkei. Other markets that were trading higher included the Chinese Shanghai Composite and the Singapore's Strait Times.