The BSE benchmark Sensex is trading over 100 points at a fresh two-year high of 20,069 at mid-session, on strong buying in fundamentally strong stocks particularly oil and gas shares.
The key index was trading 108.01 up, or 0.54 per cent, at 20,069.13 at 12.45 p.m.
The wide-based National Stock Exchange index Nifty also moved up by 20.65 points at 6,059.85.
Traders said buying sentiments got a boost on government virtually deregulating diesel prices in a key economic reform measure on Thursday.
Shares of ONGC were trading at 7.74 per cent, RIL up 0.12 per cent, GAIL 1.89 per cent. The oil and gas index was up 2.72 per cent.
Shares of software services firm Wipro fell by 5 per cent even as the company reported 18 per cent rise in its consolidated net profit for the third quarter ended December 31, 2012.
Sensex stocks Maruti, SBI and ICICI points were trading at 4.03 per cent, 1.44 per cent, 1.38 per cent, respectively.