The Sensex and Nifty continued their positive movement for the second consecutive session buoyed by a strong recovery in Asian markets as US markets logged their best day in more than 10 years. While the Sensex rose 392 points to 36,041, Nifty gained 72 points to 10,801.
Vedanta (2.49%), Sun Pharma (1.84%) and TCS (1.73%) were the top Sensex gainers.
Of 30 Sensex stocks, 26 were trading in the green.
Top Sensex losers were PowerGrid (0.48%), Bharti Airtel (0.47%), Asian Paints (0.16%) and Kotak Bank (0.13%).
All BSE sectors except telecom were trading in the green.
Top sectoral gainers were banking stocks with the BSE bankex rising 274 pts to 30,385 and BSE IT gaining 200 pts to 14,060. BSE auto index also gained 124 points to 20,918.
Meanwhile, the mid cap and small cap indices were trading 0.61% and 0.80% higher in early trade.
Market breadth was positive with 1124 stocks trading higher compared to 317 falling on the BSE.
Brent crude, used to price international oils, shed 13 cents to $54.34 a barrel. On Wednesday, the brent crude price fell to a fresh 18-month low of $49.93 per barrel.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 80.28 crore on Wednesday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 137.63 crore, provisional data available with BSE showed.
On Wednesday, the Sensex closed 179.79 points, or 0.51 per cent higher at 35649.94, while the Nifty settled at 10729.85, up by 66.35 points, or by 0.62 per cent.
An incredible day on Wall Street, which saw major indexes finishing at least 5 percent higher, spurred early gains in Asia on Thursday as some traders returned from a Christmas break.
Japan's Nikkei 225 index rebounded 3.4 percent to 19,986.32. It tumbled more than 5 percent on Tuesday before recovering slightly a day later. South Korea's Kospi added 0.3 percent to 2,034.19 and the Shanghai Composite index was up 0.7 percent at 2,514.45.
Markets in Hong Kong and Australia, which reopened after Christmas, climbed too. The Hang Seng index was 0.7 percent higher at 25,819.22. Australia's S&P-ASX 200 rallied 1.5 percent to 5,575.60.
On Wednesday, US markets snapped a four-day losing streak and clocked their best day in more than 10 years. Investors were reassured by an official signal that President Donald Trump, who has heavily criticized the Fed on Twitter, will not try to oust Chairman Jerome Powell. The broad S&P 500 index soared 5 percent to 2,467.70.
The Dow Jones Industrial Average added over 1,000 points - its biggest point gain in a day - or 5 percent to 22,878.45. The Nasdaq composite picked up 5.8 percent to 6,554.36. The Russel 2000 index of smaller-company stocks rose 5 percent to 1,329.81.
Edited by Aseem Thapliyal