The Sensex pared some of its gains at 18,233 up 211 points, and off the day's high of 18,306.
The Nifty extended gains at 5,464 up 43 points.
TCS led the Sensex gainers pack at Rs 1,190, up 3.5%, followed by Sterlite Industries at Rs 170 up 3.3%, DLF at Rs 227, Tata Motors at Rs 1,101 and RIL at Rs 921, all up 3%.
The Sensex losers chart was led by HDFC at Rs 626 and NTPC at Rs 184, both down 1%, Maruti Suzuki at Rs 1,234 down 0.6% and Tata Power at Rs 1,227 down 0.4%.
The broader markets continued to under-perform the benchmark, with the Mid-cap index at 6,809 up 0.8% and the Small-cap at 8,429 up 0.9%.
Mid-cap stocks leading the index were Jain Irrigation up 11% at Rs 175, Shree Global Trades at Rs 350 up 8%, Bayer Corp at Rs 773, Techno Electric and Engineering at Rs 252 and Amtek Auto at Rs 119, all up 5%, were the other major gainers.
In the Small-cap space, Kiri Dyes was the highest gainer at Rs 335 up 9.4%, Rollatainers at Rs 285 up 8%, Zodiac Cloth up 6.5% at Rs 368, Zylog Systems at Rs 406 and Delta Corp at Rs 74, both up 6%.
Realty continued to rule the sectoral chart at 2,186 up 2%, followed by the Oil & Gas at 9,485 and the IT index at 6,440, also up 2%.
The Power index remained flat at 2,701.