The domestic indices are trading nearly 1 per cent higher led by a rise in the banking stocks, which rose due to a firm rupee and positive cues from the global markets.
The rupee is trading marginally off its high points and hovering around 71.79 per US dollar mark. On a year to date basis, the currency has fallen over 12 percent.
The rupee and 10-year government bond prices rose after retail inflation for August fell below the RBI’s medium-term target of 4% for the first time in 10 months.
Stocks in Asian markets extended a rally after their recent battering drove valuations to a two-year low, following a technology-supported advance in US stocks.
The dollar held declines after US inflation unexpectedly cooled in August.
European markets are higher today with shares in France leading the region. The CAC 40 is up 0.26% while Germany's DAX is up 0.23% and London's FTSE 100 is up 0.03%.
At 14:23 hours, BSE SENSEX was at 38038.74 up by 320.78 points or by 0.85 % and NSE Nifty was at 11492.9 up by 123 points or by 1.08 %.
The BSE Sensex touched intraday high of 38081.48 and intraday low of 37859.52. The NSE Nifty touched intraday high of 11494.55 and intraday low of 11430.55.
The top gainers of the BSE Sensex pack were Vedanta Ltd. (Rs. 232.80,+4.04%), Power Grid Corporation of India Ltd. (Rs. 200.30,+3.67%), YES Bank Ltd. (Rs. 325.20,+3.42%), Asian Paints Ltd. (Rs. 1330.80,+3.02%), IndusInd Bank Ltd. (Rs. 1878.00,+2.89%), among others.
The top losers of the BSE Sensex pack were Infosys Ltd. (Rs. 733.05,-1.30%), Coal India Ltd. (Rs. 278.25,-1.08%), Wipro Ltd. (Rs. 327.35,-0.40%), Hindustan Unilever Ltd. (Rs. 1621.90,-0.37%), Tata Consultancy Services Ltd. (Rs. 2037.65,-0.30%), among others.
The Market breadth, indicating the overall strength of the market, was strong. On BSE out of total shares traded 2855 , shares advanced were 1823 while 858 shares declined and 174 were unchanged.