Reuters Market Eye - The BSE Sensex gains more than 100 points, rebounding after falling for two consecutive sessions. The BSE Sensex was trading up 134 points while the Nifty gained 40 points at 2.12 pm.
Bank shares, which were among the leading decliners, lead gains: Axis Bank is up 0.39 percent, while ICICI Bank Ltd gains 0.18 percent.
IDFC , a contender for a banking license by India's central bank, gains 2.18 percent after salt-to-software conglomerate Tata Sons withdrew its application for an Indian banking license, dealers say.
Tata's withdrawal could increase chances of IDFC obtaining a banking license, the traders add.
Dr Reddy's Laboratories Ltd shares gain 1.09 percent on hopes of increased in its market share of a key anti-hypertension generic drug Toprol after a second plant operated by its competitor Wockhardt Ltd was hit by the U.S. Food and Drug Administration's "import alert".
(Reporting by Abhishek Vishnoi)