Benchmark indices rallied in trade as comments by the US Federal Reserve Chair Janet Yellen were more dovish raising hopes that interest rate hikes in the US may be pushed back further.
Leading the set of gainers from the Nifty was ICICI Bank which jumped 2 per cent in early trade. Other notable winners from the space were Axis Bank, Yes Bank and IndusInd Bank.
IT stocks were also having a good day in trade pushing indices higher with TCS and Infosys among the gainers.
Hindustan Unilever and Reliance which have been seeing strong gains in trade continued to grind higher on buying interest.
Mid cap stocks also saw buying interest with stocks like IndiaBulls Housing, Biocon, CESC, Eicher Motors and Just Dial were among the gainers.
Torrent Pharma shares also gained ground after the FIPB approved Torrent Pharma's proposal to hike FII limit to 35 per cent from 13.09 per cent.
Metal stocks came in for some selling pressure with JSW Steel, Jindal Steel and Jindal Saw being among the gainers.
Meanwhile, markets across the globe saw some buying interest on dovish Fed comments. The Singapore's Strait Times and the Hang Sang were trading with marginal gains, while the Shanghai Composite continued to drift lower.