Key benchmark indices further extended gains and hit fresh intraday high in early afternoon trade. The Nifty was trading above its 100 day simple moving average placed at 11,408.15. At 12:27 IST, the barometer index, the S&P BSE Sensex, was up 294.85 points or 0.76% at 38,504.74. The Nifty 50 index was up 80.6 points or 0.71% at 11,421.75. Private sector banks witnessed buying support.

In the broader market, the S&P BSE Midcap was up 0.4%. The S&P BSE Smallcap traded 0.09% higher.

The market breadth turned negative from positive. On the BSE, 1019 shares rose and 1128 shares fell. A total of 151 shares were unchanged. In Nifty 50 index, 38 stocks advanced while 12 stocks declined.

On the derivatives front, the NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 1.67% to 17.1375. The Nifty October 2019 futures were trading at 11,426, a premium of 4 points compared with the spot at 11,422.

On the options front, the Nifty option chain for 31 October 2019 expiry showed maximum call open interest (OI) of 25.68 lakh contracts at the 12,000 strike price. Maximum put OI of 30.26 lakh contracts was seen at 11,000 strike price. The option chain indicates that Nifty will stay between 11,000 and 12,000 in October expiry.

The Nifty Bank index was up 0.84% at 28,417.95, extending its previous gains. Among private sector banks, Kotak Mahindra Bank (up 1.76%), HDFC Bank (up 1.19%), AU Small Finance Bank (up 1.15%), Yes Bank (up 1%), ICICI Bank (up 0.68%), Federal Bank (up 0.66%), Axis Bank (up 0.65%) and IndusInd Bank (up 0.42%) edged higher.

RBL Bank slipped 3.42% to Rs 249.95, extending recent losing streak on steep selling pressure. Shares of RBL Bank tumbled 19.30% to its current market price of Rs 249.95 in four trading sessions from its previous closing high of Rs 309.75 on 9 October 2019. The stock hit an intraday low of Rs 241.75 which is also a record low for the counter.

Kaveri Seeds Company rose 1.3%. The firm announced the launch of Biotechnology laboratory at Pamulaparthy in Telangana. The initiative is part of the company's focus on enhancing its R&D and aimed at improving agricultural productivity. The Biotechnology laboratory will be the largest for Kaveri Seeds and will help the company in developing plant breeding methods.