Falling crude prices following the Iran nuclear deal also pushed indices higher. Among the top gainers from the Sensex were HDFC Bank which rallied 2 per cent Jaiprakash Associates which also gained 2 per cent.
Other notable gainers from the Sensex were ICICI Bank and heavyweights including ITC and Reliance Industries. Software stocks did not rally as some of the other stocks and were subdued in trade. TCS, Infosys and HCL Tech were all trading flat.
PSU Banking stocks saw a fresh rally with Oriental Bank of Commerce gaining 3 per cent, while other notable gainers in trade were Union Bank, Allahabad Bank, Punjab National Bank and Bank of Baroda.
Infrastructure and capital goods stocks were also having a good day in trade with Larsen and Toubro gaining 1.6 per cent, Bharat Heavy rallying 1 per cent and Crompton Greaves also moving higher.
Real estate stocks also found buyers at lower levels with Indiabulls, HDIL and Unitech seeing buyers. Oil marketing stocks rallied after crude prices fell following the nuclear deal. Among the gainers were HPCL and BPCL.
Cairn India whose board will decide a share buyback on Nov 26 continued to gain ground and has rallied substantially since the news of buyback.
Metal stocks also sow some buying interest in trade with Tata Steel, Sesa Sterlite and Steel Authority of India among the winners.
Meanwhile, markets across Asia rallied following the Iran nuclear deal with the Japanese Nikkei hitting a new 6 month high.