Reliance Industries, HDFC, HDFC Bank and Infosys have gained 1-2 per cent each on the BSEThe markets have build on the previous day's gains, thanks to the overnight rally in US markets and the return of stability on the Asian Street.

At 10.45 a.m, the Sensex was quoting at 40,515, higher by 634 points or 1.5 per cent and the Nifty was at 11,891, up 183 points or 1.5 per cent.

The broader markets were also trading on a strong footing; the BSE Midcap index gained 1 per cent at 15,453 and Smallcap index added 1.2 per cent at 14,533. All the Nifty sectoral indices were trading in the green, with the Nifty Bank and Nifty Fin Service indices gaining more than 1 per cent each.US stocks rallied overnight, boosted by surprise strength in manufacturing activity, following a sharp sell-off last week on concerns about the economic impact of coronavirus.The Dow Jones rose 143 points or 0.5 per cent to 28,399, Nasdaq Composite added 122 points or 1.3 per cent to 9,273 and S-P 500 gained 23 points or 0.7 per cent to 3,248.The European markets had edged higher on Monday due to relief that UK finally exited the European Union. There is a fragile calm on Asian Street this morning as investors waited anxiously to see if Beijing could stem the previous day's market rout.

MSCI's index of Asia-Pacific shares outside Japan inched up 0.1 per cent, led by gains in South Korea and Australia.

Japan's Nikkei pared opening losses to be off 0.2 per cent.Meanwhile, oil hits 13-month lows as the outbreak of coronavirus curtailed Chinese demand and sparked concerns of potential supply cuts by OPEC.

Brent crude settled down $2.17, or 3.8 per cent at $54.45 a barrel, its lowest since January last year.The markets would be factoring the monetary policy review, which is due to be announced on Thursday.

The general view among analysts is that the central bank would maintain a status quo on the repo-rate front, on February 6, due to the continuing inflationary pressures.Meanwhile, the employees of Life Insurance Corporation (LIC) of India will hold a nationwide strike on Tuesday to protest against the government's move to sell stake in the country's largest insurer.

Finance Minister Nirmala Sitharaman, in her Budget speech, had announced stake sale of the life insurer through an initial public offering.At an event organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi, the finance minister told members of corporate India that spending proposed in the Union Budget was being done with a clear picture of asset creation and the government was taking the most fiscally prudent route in managing the economy of the country.On the results front, Bharti Airtel, Tata Global Beverages, Thermax, Titan Company, JSW Energy and Punjab National Bank will be releasing their Q3 earnings during the course of the day.The markets had bounced back in the previous session after three days of persistent fall, with the Sensex closing higher by 137 points or 0.3 per cent at 39,872 and Nifty settling at 11,707, up 46 points or 0.3 per cent.On the stock-specific front, Reliance Industries, HDFC, HDFC Bank and Infosys are in the limelight on the BSE, gaining 1-2 per cent each.On the other hand, Bharti Airtel has edged lower by 0.4 per cent to Rs 508 ahead of its Q3 numbers.

Bajaj Auto and Tata Steel are also trading lower between 0.5 per cent and 1 per cent each on the BSE.The market breadth is strong.

Out of 1593 stocks traded on the BSE thus far, there are 1146 advancing stocks as against 381 declines.