At 11:23 hours IST, the markets wiped out some early gains and were trading marginally higher with volatility. Cement, technology (barring Wipro)and oil marketing companies'' share were under pressure. Private banking stocks also retreated.

However, buying was seen in shares of telecom, oil & gas exploration, PSU banking, select metal and capital goods companies, which was supporting the markets.

The Sensex was trading at 12,028, up 75 points and the Nifty rose 23 points, to 3,648, at 11:23 hours IST. Broader indices outperformed the equity benchmarks; BSE Midcap and Smallcap indices gained 1.4-1.6%.

Among the frontliners, Infosys, TCS, NTPC, ITC, HCL Technologies (down 6%), ACC, Grasim, Ambuja Cements, ABB, BPCL and Cipla were under pressure.

However, Reliance Industries, HDFC, Bharti, Sterlite, ONGC, SBI, Reliance Communications, Wipro, HUL, L&T, Tata Motors, BHEL, and SAIL were gainers.

The market breadth was positive; about 1724 shares advanced while 1227 shares declined. Nearly 161 shares were unchanged.

On the global front, Asian markets were trading higher barring Shanghai. Nikkei shot up 4%. Straits Times, Kospi, Taiwan and Hang Seng were up 0.1-0.8%. However, Shanghai Composite was down 0.9%.