Mumbai, Mar 25 (IANS): A benchmark index for Indian equities markets was trading more than half a percent up in the afternoon trade Monday, as oil and gas, bank and public sector undertakings (PSUs) stocks gained.

The markets made the gains after Finance Minister P. Chidambaram Saturday said that the government will ease restrictions on foreign institutional investors (FIIs) participation in the country's bond market.

Even the decision of Indian Oil Corporation (IOC) to raise diesel prices by one percent from Saturday helped the oil and gas stocks gain.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 18,894.13 points, was trading at 18,862.07 points in the afternoon session, up 0.68 percent or 126.47 points from its previous day close at 18,735.60 points.

The Sensex slumped to a low of 18,833.39 points in the intra-day and touched a high of 18,950.22 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange (NSE) was trading 0.68 percent or 38.20 points down at 5,689.55 points in the afternoon session.

The BSE oil and gas index gained 161.95 points, followed by bank index which was up 131.92 points and PSU index was higher by 125.08 points.

However, the information technology (IT) index was down 16.29 points and the technology, media and entertainment (TECk) index was marginally down by 0.91 points.