Markets have opened in the green following cues from US markets. Sensex is up 115 points at 18984. Nifty is up 40 points at 5,771.
The rupee gained for a fourth consecutive session on Wednesday to touch a new five-month high as companies and custodian banks sold dollars, with dealers expecting more such sales in coming sessions.
The gains have been largely driven by foreign fund inflows into rallying local equities, which received over $3.5 billion net purchases last month.
Among the equities, Banking stocks have surged in the trade. The Bankex index is up by 221 points. Axis Bank is among the top gainers with 2.2% gains, while ICICI Bank is up by nearly 2%.
JP Associates, BPCL, DLF have all gained more than a percent each.
Pharma stocks are on the decline. Cipla is the top loser on the index, shedding off 1.3%. Ranbaxy labs has also lost 0.6%.
IT majors Infosys and TCS are also trading in the red.