The Sensex was trading higher by 118 points, while the Nifty rallied 33 points in trade. Leading the set of gainers from the Nifty were auto stocks including the likes of Maruti Suzuki and Tata Motors.
Other notable Nifty winners in trade were Larsen and Bajaj Auto. Bharti Airtel which had rallied sharply in trade on Tuesday gave up some gains and was trading with losses.
Other Nifty losers were Coal India and Hindalco. Jindal Steel continue to fall for a second day in a row following the ruling over coal block allocations. The stock was down 2 per cent in trade.
PSU banking stocks continued to rally with notable winners being Canara Bank, Bank of India and Allahabad Bank.
Shares in Tata Motors was up on receiving orders for over 2,700 'urban' buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) - II scheme.
Unitech on the other hand gained on reports that the company will sell non-core land parcels to reduce debt by 15-20 per cent and improve cash-flows for faster execution of ongoing projects.
Meanwhile, markets across Asia were trading higher, despite overnight losses across the US markets.