The S&P BSE Sensex and NSE Nifty 50 indexes extended gains in afternoon trading led by strong buying interest in banking shares for second session in a row. The Sensex rose as much as 597 points and Nifty 50 index moved above its important psychological level of 11,800.
As of 2:33 pm, Sensex was up 485 points at 40,246 and Nifty 50 index was up 126 points at 1,798.
Eight of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Bank index's nearly 3 per cent gain. Nifty Financial Services, Metal, Private Bank and PSU Bank indexes also rose between 1-3 per cent.
On the other hand, real estate IT and media indexes were trading lower.
Mid- and small-cap shares witnessing buying interest as Nifty Midcap 100 index rose nearly 1 per cent and Nifty Smallcap 100 index advanced 0.30 per cent.
ICICI Bank was top Nifty gainer, the stock rose 6 per cent to Rs 441. Hindalco, Power Grid, Hero MotoCorp, State Bank of India, HDFC, Eicher Motors, SBI Life, Bajaj Auto and IndusInd Bank also rose 2.3-5 per cent.
On the flipside, UPL, NTPC, Nestle India, Infosys, Hindustan Unilever, Tech Mahindra, Asian Paints and HCL Technologies were among the losers.
The overall market breadth was neutral as 1,353 shares were advancing while 1,208 were declining on the BSE.