The Sensex was back above the 27,000 points as the US Federal Reserve Calmed nerves as the US Federal Reserve hinted at patience before raising interest rates.
The Sensex was trading higher by a staggering 336 points, while the Nifty rallied 104 points in trade. Leading the set of gainers from the Nifty were banking stocks led by heavyweight ICICI Bank which gained three per cent. Other banking stocks gainers were State Bank of India, Bank of Baroda and Canara Bank.
FMCG majors ITC and Hindustan Unilever were the only losers from the Nifty as investors stopped chasing defensives in favour of high beta.
IT stocks also saw some rally in line with the broad markets with Infosys and TCS among the early gainers. Spicejet was up 3 per cent on hopes that the carrier would be bailed out.
Mid cap stocks were also having a good day with notable losers from the space being Jain Irrigation, Power Finance, Voltas and India Cements.
Meanwhile, most of the Asian markets were higher after US Fed, Chairperson Janet Yellen said that US Fed may not hike rates at least until the next couple of meetings.