The S&P BSE Sensex and NSE Nifty 50 indexes extended gains in afternoon trading led by gains in Reliance Industries, HDFC Bank, Bharti Airtel, HDFC and Kotak Mahindra Bank. The benchmarks staged a gap up opening but turned flat soon. However, buying in metal, banking and capital goods shares lifted the benchmarks to the day's highest level in afternoon trading. The Sensex rose as much as 599 points and Nifty 50 index reclaimed its important psychological level of 11,500.
As of 1:34 pm, the Sensex rose 471 points to 39,110 and Nifty surged 128 points to 11,516.
Eight of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Metal index's 2 per cent gain. Nifty Bank, auto, financial services, pharma and private banking shares were also going strong.
On the other hand, PSU banking information technology and real estate stocks were witnessing a mild selling pressure.
Mid- and small-cap shares were trading on a muted note as Nifty Midcap 100 index rose 0.2 per cent while Nifty Smallcap 100 index slipped 0,2 per cent.
Bharti AIrtel surged 8 per cent to 553 after the Supreme Court on Tuesday allowed telecom companies to clear their adjusted gross revenue (AGR)-related dues, amounting to about Rs 1.6 lakh crore, in a staggered manner spread over 10 years. While Vodafone Idea shares collapsed 15 per cent after the court's ruling.
Hindalco, JSW Steel, Bajaj Finance, Asian Paints, NTPC, State Bank of India, Eicher Motors, Bajaj Finserv, Tata Steel and Kotak Mahindra Bank also rose 2-5 per cent.
On the flipside, ONGC, Adani Ports, Indian Oil, Coal India, UPL, Bharti Infratel, Infosys and Tech Mahindra were among the losers.
The overall market breadth was negative as 1,540 shares were declining while 953 were advancing on the BSE.