The Nifty was trading with gains of 23 points, while the Sensex rallied 88 points in early trade. Among the gainers were Larsen and Toubro, Tata Motors, Tata Power and Dr Reddy's Labs.

Among the early Nifty losers in trade were Sesa Sterlite and Coal India.

Banking stocks saw some buying support in early trade on hopes that the "vote on account" would provide some respite for the economy. Among the banking stocks that rallied in trade were Punjab National Bank, Axis Bank, Yes Bank, ICICI Bank and Canara Bank.

Heavyweight, Reliance Industries was trading soft as reports suggest that the company is planning to take legal action against the Aam Aadmi Party.

DLF continued to trade higher despite reporting a drop in net profits. Bajaj Auto whose shares fell on Friday, following a ban on two-wheeler imports by Egypt gained ground in trade.

Mahindra and Mahindra dropped marginally after its results fell short of expectations. Mid cap stocks were trading higher in line with the broad markets. Stocks that gained from the space were Adani Power, Hindustan Zinc, Reliance Infra and Reliance Power.

Meanwhile, markets across Asia were trading higher led by gains in the Singapore's Strait Times and the Jakarta Composite.

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