BSE Sensex closed at 18257.12, up 208.27 points and Nifty closed at 5479.15, up 65.00 points.
Top gainers were Hindalco, Tata Motors, Ranbaxy Labs and Sun Pharma.
Top losers were Suzlon Energy down 3.23 percent, Idea Cellular down 1.55 percent, Siemens down 1.23 percent, Reliance Power 1.17 percent.
In banking and financial space, HDFC Bank and HDFC rallied 3 percent each. ICICI Bank, Kotak Mahindra Bank, IDFC and Axis Bank were up 0.9-1 percent.
Sensex reduces its gains
Though market was trading high from the opening time on Tuesday, Aug 18 but 30-share BSE Sensex erased about half of its gains from the day's high.
The moderate declination was the cause of selling in Reliance Industries, SBI, ICICI Bank and M&M along with capital goods, telecom, realty and power companies' shares.
At 2:03 pm, the Sensex was trading at 18110, up 61 points and the Nifty was at 5436, up 22 points. The BSE Midcap and Smallcap indices gained 0.5 percent each.
However, consistent buying in FMCG, technology, healthcare, metal and PSU oil & gas companies' shares along with Tata Motors, HDFC Bank, HDFC, Axis Bank and Jaiprakash Associates was helping the markets.
Tata Motors and HDFC Bank were among the top gainers with 3.23 percent and 2.77 percent respectively.
Idea Cellular and Suzlon Energy were among the top losers with 2.25 percent and 2.15 percent respectively.
Nifty continues to be green
50-share NSE Nifty continued trading high, lingering around 5450 level.
Shares of companies like Technology, private financial, metal (barring Sterlite), realty, FMCG, healthcare and PSU oil & gas, were supporting the market.
At 12:03 pm, the Sensex was trading at 18155, up 106 points and the Nifty was at 5447, up 33 points. The broader indices were outperforming benchmarks; gained nearly 1 percent.
Hindalco, Sun Pharma, ONGC were among the top gainers with 2.74 percent, 2.66 percent, 2.56 percent up respectively.
About 2005 shares advanced while 1192 shares declined on BSE. Nearly 182 shares were unchanged.
Nifty begins on a positive note
Following US markets on positive economic data, Nifty began on a positive note.
At 9:17 am, the Sensex was trading at 18092, up 43 points and the Nifty was at 5430, up 16 points. The CNX Midcap rose 47 points to 8802; about 585 shares advanced while 155 shares declined on NSE.
BPCL, Tata Motors, DLF, Infosys, Hindalco, HDFC Bank, Sterlite Industries, Tata Steel, Reliance Capital, ICICI Bank and Kotak Mahindra Bank, who were among the frontliners, were witnessing buying interest.
However, Reliance Power, Hero Honda, ONGC, HUL and L&T were losers in early trade.
Asian markets were trading mixed.