The BSE Sensex rebounded after a flat start on Thursday. At 1.15 p.m., the Sensex traded 123 points or 0.7 per cent higher at 18,734 while the broader Nifty traded 40 points higher at 5,699.
Strong gains in Asian shares helped sentiments on the Street. European shares, however, opened lower.
Gains were led by banking stocks. ICICI Bank, HDFC Bank and SBI together added nearly 50 index points to the Sensex. On the Nifty, private lender Axis Bank traded with over 3 per cent gains while PSU lender Bank of Baroda advanced over 2.5 per cent.
Analysts have been bullish in their outlook despite the recent consolidation that has seen the benchmark indices trade off the year-high.
"5,630-5,635 was tested and held over last one week. Expect a test of resistances around 5,730 with a medium term target at 5,900-5,950," independent analyst Sarvendra Srivastava said.
Cement and infra major Jaiprakash Associates was the top Nifty gainer, rising over 4 per cent. Realty major DLF rose over 2 per cent after four straight days of losses.
HCL Tech, which posted strong earnings yesterday, gained over 1.5 per cent. Cement stocks - Ambuja and ACC - traded off the day's high ahead of September quarter earnings.
13 stocks traded lower on the Nifty. Drug maker Sun Pharma was the top loser, down over 1.5 per cent. Mobile carrier Bharti traded off the day's low over spectrum refarming concerns.
Debt laden Kingfisher Airlines dropped 4.76 per cent. The stock has been swinging between sharp gains and losses over the last few days.
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