Key factors driving today's market rally

Yields drop: The yield on benchmark 10-year Treasury notes was 1.5415 per cent off from Wednesday's three and a half month high of 1.573 per cent. The dollar was steady, not too far from 12-month highs hit last month against a basket of currencies, and held at a 14-month high against the Euro.

US debt default fears wane: The U.S. Senate appeared near to a temporary deal to avert a federal debt default in the next two weeks, after Democrats said they might accept a Republican proposal to defuse the partisan standoff that threatens the broader economy.

Q2 update: Many companies are coming out with September quarter updates that may see sharp movement in individual shares. Most analysts expect earnings to grow significantly.

Broader market indices were trading higher, outperforming their headline peers in morning trade. Nifty Smallcap was up 1.24 per cent while Nifty Midcap advanced 1.04 per cent. Broadest index on NSE, Nifty 500 was up 0.90 per cent.

Dilip Buildcon, Chambal Fertilisers, Firstsource Solutions, Prestige Estate, Whirlpool and Gujarat State Petronet were gainers from the space while Oil India, Deepak Nitrite, Astral Pipes, Balaji Amines, Laxmi Organic and Bajaj Electricals were under selling pressure.