The Sensex was last trading higher by 152 points, while the Nifty rallied 43 points in early trade. Beaten down names which saw sharp falls on Tuesday were the top gainers in early trade. Bhel rallied 2.5 per cent in trade while Ranbaxy jumped 2.43 per cent and Hero Motor Corp gained 2.4 per cent as well.
Other Nifty gainers included Tata Motors, Dr Reddy's, Jaiprakash Associates and NMDC. Software stocks continued to rally even as the rupee threatened to breach its lifetime low. Infosys, TCS and Wipro were among the early gainers on hopes that a fall in the rupee would improve earnings.
Among the top losers were DLF, which shed more then 3 per cent on reports that the RBI has tightened home loans. Among other Nifty stocks that joined DLF in losing ground were Maruti Suzuki, Grasim and NTPC.
ONGC too was trading lower on fears that it would have to increasingly bear a part of fuel subsidies. Banking stocks that were battered in trade on Tuesday continued to exhibit weakness. Among the stocks that lost ground in trade were Bank of Baroda, Punjab National Bank, Yes Bank and Axis Bank.
Meanwhile, markets in Asia were all trading lower after rallying sharply on Tuesday. Lingering worries over Syria and QE 3 tapering by Mid-September continued to weigh on these markets.