Markets started the day on a very firm note as the Sensex surged more than 100 points in opening trades. However, the frontline indices have given up half of their gains as some of the major Asian markets have given up all their early gains.

Sensex opened at 10814 and surged to a high of 10888. The index is trading higher by 64 points at 10832 at 11.10 AM.

Nifty opened at 3158 and touched a high of 3193. The index is trading higher by 20 points at 3177.

HCL Technologies is the biggest gainer among Nifty stocks on unconfirmed media reports that the company is close to bagging a large outsourcing deal. The deal is reportedly worth more than $700 million and would be largest ever won by an Indian IT company. The stock is trading more than 3.5 per cent higher.

Satyam Computers has partly recovered from yesterday's decline and has gained over a per cent. Infosys and TCS have gained nearly a per cent each.

Tata Tea has gained 3.5 per cent on the back of the strong rally in Tata Coffee in recent sessions. Tata Tea holds a majority stake in Tata Coffee.

Engineering stocks have bounced back from yesterday's correction. BHEL is up more than 2 per cent while L&T and Siemens have added more than a per cent each.

ONGC has gained over 1.5 per cent and is supporting the indices considerably.

Among other major gainers, Hindalco has gained nearly 1.5 per cent while Gujarat Ambuja Cement and Maruti have gained over a per cent each.

Jet Airways is the biggest loser among index stocks and has sunk to a new 52-week low in early trades. The stock is trading more than 2 per cent lower.

Select pharma stocks are weak, led by Sun Pharma which is down nearly a per cent. Ranbaxy has lost more than 0.5 per cent.

Oil marketing stocks are weak as crude oil prices remain in an up trend. BPCL has lost almost a per cent and HPCL is down almost 0.5 per cent.

Reliance Industries is under modest selling pressure after gaining 2 per cent yesterday.

Select banking stocks are also weak in early trades. HDFC Bank and PNB are down around 0.5 per cent each

Among other losers, Bharti and Nalco are down nearly a per cent each.

Mid-caps and small caps also opened on a strong note and, unlike large caps, are holding on to their gains. Many of the popular and news driven mid-caps continue to attract considerable buying interest.

The mid-cap index is now trading with gains of nearly a per cent. Market breadth on the NSE is positive in early trades with nearly 3 stocks advancing for every declining stock.

Solectron Centum, Tata Coffee, Saregama India, Shivalik Global, Jindal Photo, Bharti Shipyard and Magma Leasing are among the major mid-cap gainers.

Repro India, Suven Life and Gateway Distriparks are the major mid-cap losers.