The broader markets continued to outperform the benchmark indices as investors shifted focus with valuations of large-caps stretched after gains in the previous four straight session which pushed the benchmark indices near to their 52-week highs.
Investors are now seen bargain hunting in fundamentally sound mid-cap and small-cap which had corrected recently.
It may be recalled that Prime Minister Narendra Modi in his maiden Independence Day speech focussed on financial inclusion and making India a manufacturing and export powerhouse.
Public sector banks which generally have a wide rural reach could be the beneficiaries as the financial inclusion takes off.
By 1133 hrs, the Sensex was up 107 points at 26,210 and the Nifty is 34 points down at 7,826.
The broader markets are, however, outperforming the benchmark indices. The BSE Mid-cap index has advanced 1.32% or 9,126.32 and the small-cap index is up 1.66% at 9,987.09.
Among mid-cap banks, Central Bank of India, Oriental Bank of Commerce, Indian Bank and Dena Bank were up nearly 2.5-3% each.
Manufacturing and exporters were also among the top mid-cap gainers in today’s trade. AIA Engg, BASF India, Whirpool India, Amara Raja Batteries were up 5-10%. Suzlon Energy and Rajesh Exports were up nearly 5% each.
Shares of oil and gas, including oil marketing companies are trading higher by up to 4% on the bourses due to decline in Brent crude oil price.
Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) rallied 4% each at Rs 431 and Rs 636 respectively, while and Indian Oil Corporation (IOC) up 3% at Rs 349.
In the small-cap sector, Alok Industries surged 13%, Goodyear India was up 10%, Marksans Pharma gained 10%, Simplex Infrastructure and Ahluwalia Contracts up over 7% each.
SpiceJet has risen by over 8% after the company said it achieved an operating profit of Rs 9 crore in Q1 June 2014.
Market breadth was strong with 1,622 gainers and 748 losers on the BSE.