 "Markets gain on value-buying")
Risk appetite also improved after Bank of Japan Governor said he will step down in March raising hopes that a leadership transition may aid Prime Minister Shinzo Abe’s campaign for aggressive easing.
At 1:10PM, the Bombay Stock Exchange's 30-share index Sensex rose 17 points to trade at 19,677 while the National Stock Exchange's 50-share Nifty gained 10 points at 5,966.
In the results calendar, Cipla, Godrej Industries, JK Lakshmi Cement, Proctor & Gamble and Tech Mahindra will unveil their Oct-Dec performances later today.
Asian markets traded firm. Hong Kong's Hang Seng rose 0.5% to 23,270, Taiwan's Weighted index was up 0.25% to 7,906, Singapore's Straits Times rose 0.12% to 3,276 while China's Shanghai Composite gained 0.04% to 2,434 and Japan's Nikkei surged 3.77% to 11,463.
Back home, metal, real-estate, consumer durable, oil & gas and technology gained while banks and capital goods declined on BSE.
Among key Sensex stocks, HDFC gained 2%, Maruti Suzuki rose 1.8%, Jindal Steel and Tata Steel was up 1.5% each, Tata Power rose 0.8%, Reliance Industries inched up 0.3% on BSE.
Among losers, NTPC fell 1.7%, HUL was down 1.6%, Cipla fell 0.5%, ICICI Bank and HDFC Bank shed 1% respectively on BSE.
The other key notable movers include, sugar companies that have rallied up to 5% in early noon deals on the Bombay Stock Exchange on partial decontrol buzz.
Among individual stocks Dhampur Sugar Mills has rallied 5.5% to Rs 48, followed by Bajaj Hindustan and Balrampur Chini Mills are up 5% each at Rs 24 and Rs 48.20 respectively.
Thomas Cook (India) has surged over 5% to Rs 56.55 after the travel services provider said that it is acquiring 74% stake in HR solutions company IKYA Human Capital Solutions for Rs 256 crore (approximately $47 million).
The broader markets traded positive with mid-caps and small-caps gaining 0.2-0.4% on BSE.
The market breadth is positive. Out of 2,709 stocks traded, 1,425 stocks gained compared to 1,156 declines on BSE.