Key indices moved up higher after opening flat on Tuesday mailnly led by banking, automobile, FMCG and financial services sector stocks.
At 12.25 pm the BSE benchmark Sensex was quoted higher by 200.38 points, or 0.52%, to 40,346.32.
The benchmark had touched a low of 39,978.39 in the opening trading session, but steadily improved on buying support.
On the NSE, the Nifty too rebounded from an initial low of 11,723, to trade higher by 75.90 points to 11,843.65.
Indices were led by gains in index-heavyweights Kotak Bank, NTPC, Nestle, Asian Paint, Bajaj Auto, UltraCem Co, L&T and Tech Mahindra amid negative trend in other Asian markets.
On the BSE, out of 2,520 shares traded today, advancing scrips were lower at 1,107 as compared to the decliners at 1,266.