After a splendid start that saw the indices hit new highs, and a subsequent retreat from higher levels, the market has been moving in a tight band for more than four hours now.
The mood, however, remains quite upbeat with investors cheering the Bharatiya Janata Party's remarkable show in the recently held assembly elections in four states in the central and northern part of the country.
Recent upbeat economic data from the U.S. and China and the rupee's continued strength against the greenback are also contributing to the buoyancy in the market.
The Sensex is up 341.43 points or 1.63% at 21,338.96. The Nifty is up 106.85 points or 1.7% at 6366.75.
Bank and capital goods stocks continue to hold gains thanks to sustained buying interest. Realty, power and oil stocks are the other impressive movers today. Metal stocks are off their highs. Automobile and information technology stocks too have shed some of their early gains. Healthcare and FMCG stocks are somewhat subdued.
Sesa Sterlite is trading nearly 5% up. ICICI Bank is up 4.8%. Larsen & Toubro, NTPC, ONGC, HDFC Bank, TAta Power, Maruti Suzuki and Wipro are up 2% - 4%.
Mahindra & Mahindra, State Bank of India, Dr Reddy's Laboratories, Reliance Industries, Hindalco, Bajaj Auto, Bharti Airtel, HDFC and Hero Motocorp are also up with solid gains.