The 30-share BSE Sensex closed at 16,926.22, up 294.21 points and the 50-share NSE Nifty gained 90.95 points to settle at 5032.70.
The benchmark indices lost 100.7 points and 33.65 points from day's high of 17,026.91 and 5066.35, respectively.
All sectoral indices ended in the green. But selling in select rate sensitives like Hero Honda, Maruti, PNB, SBI and Unitech wiped out some gains from higher levels.
Asian markets closed strong in trade today, which helped the markets since early trade.
Shanghai and Hang Seng jumped 3.2 pc each. Nikkei was up 2.91 pc and Kopsi up 2 pc. Taiwan Weighted and Jakarta gained 0.9-1.2 pc while Straits Times fell 1.09 pc.
Sensex trading above 17k; Bharti up 4 pc
At 01:06 pm, further buying in heavyweights helped the Sensex to come back above the 17,000 mark and the Nifty above 5,050 level.
The Sensex was up 385.18 points or 2.32 pc at 17017.19, and the Nifty was up 120.90 points or 2.45 pc at 5062.65. About 2134 shares have advanced, 739 shares declined, and 560 shares were unchanged.
Top gainers on the BSE Midcap were Thomas Cook, GMDC, AIA Engineering, IBN18 Broadcast and Mcleod Russel were up 6-12 pc.
Top losers on the BSE Midcap were Shriram City, Glenmark, Emami, Apollo Hospital and Carborundum were down 1-4 pc.
Top gainers on the BSE Smallcap were Cambridge Solution, Resurgere Mines, Mahindra Forging, VIP Industries and Shrenuj and Co were up 10-18 pc.
Top losers on the BSE Smallcap were PVP Ventures, Advani Hotels, Jindal Worldwide, Orissa Sponge and EIH Associated Hotel were down 2-3 pc.
Nifty trading higher; Sensex up by 300 pts
At 11:11 am, the Nifty rallied further post better-than-expected Q2 GDP (gross domestic product) numbers. The benchmark indices jumped nearly 1.9 per cent each.
The Sensex was up 303 points at 16,935 and the Nifty gained 92 points at 5,033. About 1085 shares advanced while 135 shares declined on the NSE.
Buying was seen across all the sectors; the BSE Metal, Realty, Auto, Capital Goods and Bank indices gained 1.5-3 pc. Other sectoral indices went up over 1 pc.
In the midcap space, GMDC, Thomas Cook, Wockhardt, Shriram City and Spice Communications gained 5-9.4 pc while Glenmark lost 2.8 pc as MSCI removed the stock from its India Index. Nagarjuna Construction, Omaxe, Emami and ING Vysya Bank went down 0.9-1.4 pc.
In the smallcap space, Resurgere Mines, Cambridge Solutions, Atlanta, Ganesh Housing and Goodricke Group were up 7-12 pc while Zodiac Clothing, Ushdev International, Advani Hotels, Lloyds Metals and Orissa Sponge lost 2-4.6 pc.
Nifty opens above 5000 on positive Asian cues
The Sensex bounced back smartly on the back of positive Asian cues and investors believed that Dubai is an isolated event.
The Nifty got back above the 5,000 mark and the Sensex is inching towards.
At 9:56 am, the Nifty was trading at 5,019, up 77 points and the Sensex was trading at 16,888, up 256 points.
The CNX Midcap was up 106 points to 7,143. About 671 shares advanced while 61 shares declined on the NSE.
Among the frontliners, Jaiprakash Associates, Reliance Industries, HDFC, ICICI Bank, L&T, Sterlite, DLF, Unitech, Ranbaxy Labs, Cairn, Jindal Steel and Tata Steel were biggest gainers in early trade.
Asian markets bounced back. Shanghai, Nikkei, Hang Seng and Kospi gained 2.5-3.2 pc. Taiwan Weighted was up 1.5 pc and Jakarta up 0.6 pc. SGX Nifty rose 1 pc. However, Straits Times fell 2 pc.