The BSE Sensex and Nifty traded higher in the late afternoon trade after IT outsourcer Infosys reported better-than-estimated earnings for the third quarter of FY15.
Sensex recovered over 200 points from its day's low and the 50-share Nifty rose over 50 points from its day's low.
Infosys, which kick-started the Q3 earning season today reported a consolidated net profit of Rs 3,250 crore against analyst's estimates of Rs 3,151 crore polled by NDTV.
Infosys shares were up 4 per cent pushing the CNX IT index 2.5 per cent higher. Infosys shares gained nearly 7 per cent at its day's high.
Infosys results also turned positive for other IT outsources as well. Tech Mahindra gained 3.2 per cent, while TCS was up 1.7 per cent.
Shares in ONGC soared nearly 3.5 per cent, supporting the benchmark indices after reports suggested that government may exempt ONGC and Oil India from subsidy burden for rest of the year as international oil prices have dropped. Oil India was up 4.2 per cent.
Hindustan Unilever was the top gainer in Nifty, up 4.45 per cent.
However banking shares put some pressure on the benchmark indices as investors booked profit in recent banking gainers. The Bank Nifty was down 1 per cent. ICICI Bank, Axis Bank, SBI, Bank of Baroda were among the top banking losers, down between 0.5 to 3 per cent.
DLF was the top loser in Nifty, down 4.4 per cent.
As of 2.45 p.m. Sensex was up 81 points at 27,355, while the 50-share Nifty gainer 19 points to 8,254.