The Sensex was trading with gains of 103 points, while the Nifty rallied 32 points in trade. Nifty stocks that rallied in trade apart from the oil and gas stocks were pharma stocks including the likes of Sun Pharma, Dr Reddy's and Cipla.
Shares in Ranbaxy rallied six per cent after the company got approval from the US FDA for Valsartan. Shares in Wipro were trading higher after reports that ten independent directors will be leaving the company, a move that will help the country's third largest software exporter align with the new regulations and also appoint fresh faces.
Reliance Capital surged almost 3 per cent after reports that Japanese financial services giant Sumitomo Mitsui Trust Holdings may buy a 10% stake in the company.
Nifty stocks that lost ground in trade were Hero Motor Corp, Hindalco, Hindustan Unilever and ICICI Bank.
Mid cap stocks were also having a good session in trade with notable winners being Mcleod, Tata Global Beverages and Petronet LNG.
Infosys was trading higher despite reports that another of its top managers had quit the company.
Meanwhile, Asian markets were subdued after hawkish comments from a Federal Reserve official on interest rates in the US.