The Sensex was trading higher by 176 points, while the Nifty rallied 45 points in trade. Leading the set of gainers apart from Tata Motors was NTPC, Jindal Steel and HDFC.
Shares in ONGC were trading higher on reports that ONGC Videsh has signed Production Sharing Contracts for two onshore blocks in Myanmar.
Nifty losers in trade were Kotak Mahindra, Hindustan Unilever and Tata Consultancy Services. HPCL was trading lower after the company's results lagged estimates.
Bank of India which had a successful fund raising plan was trading marginally lower. Jet Airways was trading higher after the company managed to reduce its losses.
Mid cap shares were having a quiet session in trade with notable winners being Havvels India, Petronet LNG and Tata Global Beverages.
Realty stocks continued to rise for a second day in a row with gainers being DLF, Unitech and HDIL. Gail which had fallen post its results on Monday gained ground and was trading one per cent higher.
Meanwhile, markets in Asia were higher except the Shanghai Composite which lost ground in trade.