The S&P BSE Sensex and NSE Nifty 50 Indexes extended intraday gains and were on track to end higher for third day in a row led by gains in banking and information technology shares like ICICI Bank, HDFC Bank, Tata Consultancy Services and IndusInd Bank. Earlier in the day, the benchmarks opened higher but later gave up gains owing to weakness in select FMCG and capital goods shares. Meanwhile, mid- and small-cap shares were trading on a mixed note in afternoon trades.

As of 1:42 pm, the Sensex rose 154 points or 0.4 per cent to 39,938 and NSE Nifty 50 Index advanced 0.35 per cent or 42 points to 11,965.

Sixteen of 19 sector gauges compiled by BSE were trading higher led by the S&P BSE Metal Index's 1.07 per cent gain. Telecom, Bankex, Oil & Gas, Energy, Basic Materials, Information Technology and Finance sector gauges also rose between 0.4 and 1 per cent each.

On the other hand, S&P BSE Capital Goods Index was top loser, down 0.24 per cent.

Mid- and small-cap shares were trading on a mixed note as the S&P BSE MidCap Index rose 0.65 per cent while the S&P BSE SmallCap Index was trading on a flat note.

Yes Bank was top gainer in the Nifty 50 basket of shares, the stock rose 4.12 per cent to Rs 141.50. Zee Entertainment, ONGC, Vedanta, IndusInd Bank, Bharti Infratel, Cipla, HCL Technologies and UPL were also among the gainer, up between 1.7 and 3.5 per cent each.

On the flipsde, Indiabulls Housing Finance slumped over 7 per cent to Rs 681.25 after a plea was filed in the Supreme Court on Monday seeking legal action against Indiabulls Housing Finance Limited (IHFL), its chairman and directors for alleged misappropriation of Rs. 98,000 crore of public money.

Sun Pharma, Mahindra & Mahindra, Tech Mahindra, Dr. Reddy's Labs, Larsen & Toubro, GAIL India, Bharat Petroleum, Power Grid and Hindustan Unilever were also among the losers.

The overall market breadth was negative as 1,353 shares were declining while 1,012 were advancing on the BSE.