The Sensex was trading higher by 127 points, while the Nifty gained 31 points at 7589 points. Leading gainers from the Nifty were ICICI Bank, IDFC, Bhel, Punjab National Bank, NTPC and Grasim.
United Spirits lost a huge 4 per cent in trade, while ONGC was also down more than 2 per cent. Other Nifty stocks that fell were technology stocks including the likes of TCS, HCL Tech and Wipro.
Tata Steel rose after Moody's Investors Service today affirmed the credit ratings on Tata Steel as well as Tata Steel UK Holdings.
RComm was up after reports that the company is looking to raise about $400 million (around Rs.2,400 crore) by selling shares to institutional investors.
Select mid cap stocks saw a huge rally in trade with notable winners being GMR Infra, Crompton Greaves, India Cements and Voltas.
Among the other stocks that gained ground were from the realty space with the CNX Realty gaining as much as one per cent in early trade. Among the gainers were DB Realty, Indiabulls, Oberoi, Anant Raj and HDIL.
Meanwhile, markets across Asia were trading higher led by a strong rally in the Japanese Nikkei. Other markets that gained were the Hong Kong and the Taiwanese markets.