Markets confidence rekindled after Greek Prime Minister Lucas Papademos raised hopes about the deal.
At 10.00 am IST, the 30-share BSE Sensex was trading at 17060.00 up by 196.70 points or 1.17% and NSE Nifty was trading at 5146.65 up by 59.35 points or 1.17%.
In Asia, most of the markets were trading in green, the Nikkei 225 up by 28.03 points and was at 8821.34. The Hang Seng was up by 144.27 points and was at 20,304.38. Shanghai was up by 4.39 points and was trading at 2,289.42
Among sectoral indices on BSE, all the sectors were trading in positive terrain. Bankex, realty, Oil & Gas and IT were leading the rally.
On the National Stock Exchange (NSE), the top volume gainers were State Bank of India, ICICI Bank, Axis Bank, PNB and Sail posted gains between 2.15%-3.11% in morning trade.
And the loser in morning trade were Siemens, Coal India, Hindustan Lever, NTPC, Hero Moto Cop.