BSE 30-share index was up 283 points or at 15,451 at 1200 hrs, while the broader based S &P CNX Nifty index of National Stock Exchange was up by 74 points at 4604. The BSE Mid-Cap index was up 1.54 per cent at5,977.73 and the Small-Cap index was up 1.51 per cent at 7,290.33.
Among the major Sensex gainers were, Jaiprakash Associates up 5.56pc at Rs 193.70, State Bank of India was up 3.57 per cent at Rs 1576.25, Reliance Communication up 3.41 per cent at Rs 453.40 and Maruti Suzuki up 2.83 per cent at Rs 698.90.
Banking shares surged on sustained demand as a further fall in oil prices raised hopes of easing inflation. Kotak Mahindra Bank gained 4.23 per cent at Rs 666, Punjab National Bank up 4.12 per cent at Rs 521.15, Axis Bank up 3.95 per cent at Rs 763.90, HDFC Bank up 3.35 per cent at Rs 1323.05, ICICI Bank rose 3.24 per cent at Rs 752.50.