Riding on buying across sectors including oil & gas, infrastructure, technology, telecom, financial and metal companies' shares, Sensex surged over 190 points while Nifty also closed over 60 points higher.
However, FMCG did not attract buying interest.
BSE Sensex shut shop at 17,774.26, up 199.73 points, NSE Nifty closed at 5333.50, up 64.45 points.
European and American markets also supported Indian indices.
4: 08 PM
Mkts green despite selling pressure
Despite selling pressure, Sensex traded higher in the second half of the trading session. Benchmarks were gaining support from shares of oil & gas, infrastructure, telecom, metal, technology and select auto companies.
At 2: 20 pm, BSE Sensex was trading 17,740.41, up 165.88; NSE Nifty was trading at 5321.60, up 52.55 points.
While ONGC and Reliance Industries were leading the markets, ITC, GAIL, Jindal Steel, Hero Honda, HDFC Bank, Maruti, ABB, DLF, Cipla, ACC, Sun Pharma and Suzlon Energy dipped.
2: 30 PM
Mkts volatile; ITC, GAIL, HDFC dip
Markets were trading amid volatility due to the opposing forces of sell-off and buying interest. While selling in ITC, GAIL, HDFC Bank, Maruti, Hero Honda, Jindal Steel, ABB, HDFC, Suzlon, ACC, Ambuja Cements and Cipla capped the gains, buying in oil & gas, technology, capital goods, power, metal, telecom, realty and select financial companies' shares were supporting the markets.
At 12:01 pm, BSE Sensex was trading at 17661, up 87 points and NSE Nifty was at 5295, up 27 points. The BSE Midcap Index rose 0.5 per cent and the Smallcap was up 1 per cent.
The frontliner gainers were Reliance Communications up 3.15 per cent; ONGC up 3.03 per cent; Idea Cellular up 2.56 per cent; BPCL up 2.52 per cent; Kotak Mahindra up 1.66 per cent; Reliance Infrastructure up 1.54 per cent; Reliance Industries up 1.39 per cent and Tata Motors up 1.24 per cent.
GTL Infra, Sun Pharma Advanced, Gee Kay Finance, Fresenius Kabi and Peninsula Land were midcap gainers while Godrej Industries, Edelweiss Capital, Federal Bank, Apollo Tyres and United Bank slipped.
Among the smallcaps, Voltamp Transformers, Indo Tech Transformers, Taj GVK Hotels, Welspun India and GRUH Finance gained while Panoramic Universal, Disa India, Religare Tech, Oriental Hotels and Atco Corp dipped.
HPCL, BPCL, IOC, Oil India, Reliance Communications, Reliance Industries and ONGC continue to be the most active shares on EGoM approval to deregulate petrol prices and the hike in fuel prices.
12: 28 PM
Mkts open flat, turn +ve on buying in ADAG, metals
After opening flat, benchmark Nifty rose marginally and is hovering around the 5300 mark.
At 9:10 am, NSE Nifty was at 5298, up 30 points, BSE Sensex was trading at 17664, up 90 points.
The markets were trading with positive bias as buying was seen in PSU oil & gas, telecom, metal, realty and ADAG stocks.
Among the frontliners seeing buying interest were Idea, ONGC, Cipla, Wipro, Reliance Infrastructure, Reliance Capital, Bharti Airtel, Sterlite Industries, Unitech, Hindalco and SAIL.
However, profit booking took BPCL, HPCL and GAIL down. Among the other losers were SBI, Maruti, Axis Bank and Hero Honda due to the expectations of an interest hike.