Positive european cues, along with banking, realty, telecom and private power companies' shares helped the benchmarks.
The rally was led by Reliance Industries up 2.2 per cent, SBI up 5 per cent, DLF up 6.5 per cent, TCS up 3 percent and ICICI Bank up 2.5 per cent.
Sterlite Industries ended the day as the major losers plunging 5 per cent.
Apart from this, selling in metal, FMCG, oil marketing, cement, select technology and pharma stocks capped the gains.
4: 19 PM
European cues, buying in telecom, realty help mkts
Buying in banking, realty, telecom, private power and capital goods companies' shares helped the Nifty to inch towards the 5150 mark. Up to 1 per cent gain in the European markets also proved to be supportive.
Reliance Industries, TCS and Cairn India were the other gainers. However, plumetting up to 5.5 per cent, Sterlite Industries was the biggest loser.
At 1: 08 PM, the Sensex was up by 145 points to 17,340 and the Nifty gained 40 points at 5,147. The BSE Midcap Index gained 1 per cent and Smallcap was up 0.9 per cent.
Among the largecaps, SBI and Cairn India shot up 4 per cent each. DLF, HDFC, ICICI Bank. Reliance Industries and Reliance Infrastructure gained 2 to 3.6 per cent.
Tata Power, Reliance Communication, Unitech, Ranbaxy Labs, TCS, Tata Communication, PNB and BHEL gained 1 to 1.8 per cent.
In midcap space, EIH, Novartis India, J&K Bank, Oriental Bank, AstraZeneca were the gainers while JM Financial, Bajaj Finserv, Deccan Chronicle, IRB Infra and Jaiprakash Hydro fell.
In the smallcap arena, C and C Construction and Merck shot up 20% each. TIL, BASF and Balkrishna Industries were the other gaines. However, KLG Systel, Balaji Telefilm, Infotech Enterprises, Maharashtra Ele and Transport Corp slipped 4.5 to 5 per cent.
2: 31 PM
Mkts choppy; banking, power, IT, telecom up
Buying in banking, oil exploration, power, telecom, realty and technology stocks were helping the market. But selling in metal, FMCG, oil marketing, auto (barring Maruti) and select cement stocks capped the gains.
Nifty was trading amid volatility.
At 11:47 am, Sensex was up 114 points at 17,309 while Nifty was up 29 points at 5,138.
The broader indices continued to outperform the benchmark indices, up 0.8 per cent each.
The gainers in the banking space were SBI up 4.27 per cent, Bank of Baroda up 2.86 per cent and ICICI Bank up 2.27 per cent. PNB and Kotak Mahindra gained over 1 per cent.
Power stocks like Lanco Infratech, Neyveli Lignite, Reliance Infrastructure, Tata Power and BHEL, Torrent Power, GMR Infra, Suzlon Energy, Adani Power and NTPC gained.
In the telecom pack, Reliance Communication, Tata Teleservices, Idea Cellular, Bharti Airtel, MTNL and Tata Communication were up 0.8 to 1.6 per cent. In the technology space, TCS, Tech Mahindra, Wipro and HCL Tech went up 0.5 to 1.4 per cent.
Realty stocks like DLF, Orbit Corporation, HDIL, Omaxe, Parsvnath and Unitech gained up 0.8 to 2.2 per cent.
While Cairn India, Reliance Industries ONGC sureged in the in the oil & gas space, BPCL, IOCand HPCL tanked.
Among the metals, Sterlite Industries plunged 6 per cent. Jindal Steel, Tata Steel, NALCO and Hindalco were down 1 to 1.8 per cent.
In the FMCG arena, ITC was down 1.33 per cent while HUL tanked 0.73 per cent.
12: 47 PM
Sensex opens flat; ITC, ICICI, Tata Motors lose
The benchmarks have opened the day flat. Sensex sees consolidation for the second session after the earlier two-day rally. Buying was seen in technology, power, realty, telecom and oil & gas exploration stocks.
At 10:08 am, the Sensex was up just 13.5 points at 17,209 and the Nifty was up 5 points at 5,112.
While Sterlite Industries plunged 8.5 per cent on equity dilutions concerns, ITC, Jindal Steel, ICICI Bank, L&T, Tata Steel, BPCL, SAIL, Tata Motors, M&M, Hero Honda and Nalco were the other losers.
However, Cairn India and Reliance Communication gained over 2 per cent. HDFC, Reliance Infrastructure, Ranbaxy Labs and Tata Power rose 1 per cent each.
10: 25 AM