The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,276.5 points, was at 18,440.59 points, 183.47 points or 1 percent up from its previous close at 18,257.12 points.
At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty was ruling 0.92 percent higher at 5,529.35 points.
Broader markets indices were also in the green, with the BSE midcap index 0.77 percent up and the BSE smallcap index trading 0.84 percent higher.
Realty stocks led the losing lot.
The market breadth was positive with 1,769 scrips advancing, compared to 1,028 stocks declining and 97 remaining unchanged.
Asian bourses were also trading higher.
The Japanese Nikkei was ruling 1.32 percent higher at 9,362.68 points while Hong Kong's Hang Seng was up 1.22 percent at 21,279.01 points.
The Chinese Shanghai Composite index was up 1.08 percent at 2,695.23 points.