Among the stocks that rallied were the oil and gas stocks like Reliance and ONGC ahead of the meeting by the Cabinet committee on Economic Affairs that will decide on a gas price hike.
Sun Pharma was the other Nifty stock that gained in trade jumping 5.75 per cent on hopes that the falling rupee would boost earnings. Other top Nifty gainers were Ultratech Cement, HDFC Bank and DLF.
Tata Motors continued to drop lower, while IDFC, Jindal Steel and Maruti were among the other Nifty losers.
Software stocks also saw sustained buying on hopes of a falling rupee would help boost earnings. TCS, Infosys and HCL Tech all gained in trade.
Mid cap stocks also had a good day in trade with notable gainers being Future Retail, HDIL, Havells, Hexaware and Tech Mahindra.
PSU banking stocks continued to have a bad day in trade with Allahabad Bank and IDBI Bank both losing more then 2 per cent in trade, while Bank of India and Syndicate Bank lost more then 1 per cent each.
Meanwhile, markets in Asia ended the day sharply higher led by strong gains in the Japanese Nikkei and the Korean Kospi.