Buying in shares of banking, metal, realty, auto, oil & gas exploration companies and in stocks like BHEL and Reliance Communication kept the market on the positive side.
Technology stocks remained under pressure ahead of Infosys numbers.
NTPC, Bharti, HDFC, HUL, L&T and Grasim were the losers.
The day closed at 10,926.33, up 122.47 points when it came to the 30-share BSE Sensex. And the 50-share NSE Nifty ended up 25 points, to 3,367 and touched a day's high of 3417.80. (Provisional).
Market breadth strong, Tech Mahindra shot up 13pc
At 13:23 PM Sensex was trading at 10,944, up 140 points and the Nifty was trading at 3,370, up 28 points.
Due to the buying interest experienced by the banking, metal, auto, private power companies shares and stocks of Reliance Communication, Reliance Industries, DLF and BHEL ,the benchmark indices were trading higher amid volatility.
Selling was seen in NTPC, TCS, ONGC, Wipro, Infosys, Bharti, HUL, BPCL, HDFC and Hero Honda. Broader indices-BSE Mid caps and Small cap indices were up over 3%.
Tata Steel, Tata Steel, Tata Motors, Sterlite Industries, HDFC Bank, SBI and Suzlon Energy, were the top gainers. The BSE metal index, Bankex, Auto Index, Healthcare and Capital Goods indices all rose.
Winning the bid for Satyam Computers, Tech Mahindra shot up 13%.
Rolta, Thomas Cook, 3M India, Indian Bank and GMDC went up 13-22% in the midcap stocks. Prime Focus, Electrotherm, PSL, Mukand and Vardhman Textiles gained 20% each, in the small cap stocks.
On the whole the market breadth was strong; about 2235 shares advanced while 743 shares declined. Nearly 113 shares were unchanged.
Indices volatile; BHEL, ONGC, L&T slipped to red
The Sensex was trading at 10,860, up 56 points and the Nifty was trading at 3,353, up 11 points, and the benchmark indices were volatile at 11:24 AM.
Banking, metal, realty, auto, pharma stocks and stocks like BHEL and Reliance Communication were supporting the markets. ONGC, L&T, NTPC, Bharti, HDFC, HUL, BPCL and Idea slipped into the red.
The broader indices were found outperforming the benchmark indices. BSE Midcap and Small cap indices gained over 2% each keeping the market breadth in favour of advances.
3M India, Indian Bank, Yes Bank, Jai Corp and Pfizer went up 10-20%, in the mid cap space. In the small cap stocks Electrotherm, ITI, Mukand, RSWM and Godawari Power gained 13-20%.
Satyam, ICICI Bank, Tata Steel, Reliance Industrial Infrastructure and Reliance Industries were most active shares on the market.
Even though the Nikkei slipped marginally, on the whole Asian Markets were trading higher.
Indices open positive, focus on Satyam
At 9:56 AM, the Sensex was trading at 10,956, up 152 points and the Nifty was trading at 3,377, up 35 points. The CNX Midcap went up 48 points, to 3,735.
Due to the supportive global cues, the benchmark indices opened on a positive note. And the Sensex was advancing towards the 11,000 mark.
Metal, financial, realty, auto along with some infrastructure stocks backed up the market.
Satyam was in focus and saw a jump of 12%. It soared above Rs.50 and about 19.8 shares saw trade at Rs 53.75/sh.
ICICI Bank, HDFC Bank, Unitech, Cairn, Tata Steel, Tata Motors, Reliance Infrastructure, Sterlite Industries, Infosys (gains 2.5% ahead of Q4 numbers), Axis Bank, L&T (up 2.5%, as it submitted bid for Satyam), SBI, SAIL, PNB and HDFC were major gainers in the early trade.
Layshree Tea, Suven Life, Baja Hindhustan and Firstsource were among the gainers. Pfizer India saw a rise of 8%, on the account of its parent company making an offer to acquire 33.77% stake at Rs 675/sh.
Mercator Lines and Indiabulls Real Estate were found lagging.