Nifty Auto and Nifty Pharma indexes also rose over 1 per cent each.

The S&P BSE Sensex and NSE Nifty 50 indexes rose for second straight session paced by gains in ONGC, Tata Motors, UltraTech Cement, Bharti Airtel and Yes Bank. The benchmarks opened higher and extended gains in noon deals. However, mild selling in banking shares in last 30 minutes of trade wiped out some gains for the benchmarks. The Sensex surged as much as 386 points from its previous close and the Nifty 50 index briefly moved above important psychological level of 11,400.

The Sensex ended 87 points or 0.23 per cent higher at 38,214 and the Nifty 50 index climbed 0.32 per cent or 36 points to close at 11,341.

Nine of 11 sector gauges compiled by National Stock Exchange ended higher led by the Nifty Realty index's 1.6 per cent gain.

Nifty Auto and Nifty Pharma indexes also rose over 1 per cent each.

On the other hand, Nifty PSU Bank index was top loser, down 0.54 per cent.

Mid- and small-cap shares ended on a flat note as the Nifty Midcap 100 index rose 0.1 per cent while the Nifty Smallcap 100 index ended unchanged.

ONGC was top gainer in the Nifty 50 basket of shares, the stock rose 5.5 per cent to close at Rs 136.10. Tata Motors, Bharti Airtel, UltraTech Cement, Sun Pharma, IndusInd Bank, Yes Bank and JSW Steel were also among the gainers.

On the flipside, Infosys was top Nifty loser, the stock fell 3.5 per cent to Rs 786 after it reported its September quarter earnings on Friday. Bajaj Finance, Bajaj Finserv, Power Grid, UPL, Adani Ports, Kotak Mahindra Bank, ICICI Bank and Larsen & Toubro were also among the laggards.