At 9.30 am IST, the Sensex was trading at 17,014 points, up 46 points. The Nifty was seen trading higher by 12 points at 5,154 points.
Stocks rose after a report showed that more than estimated Americans signed contracts to buy previously owned homes in May 2012, a sign that the US housing market is on the mend .The index of pending home resales in the US rose 5.9 per cent to 101.1 in May 2012 from the previous month.
Sentiment was boosted further after a report showed that orders for US durable goods rose 1.1 per cent in May 2012 from the previous month, the first increase since February 2012, signaling a pickup in the world's largest economy. Markets also rallied on speculation that China, the second largest global economy may bolster stimulus to spur growth.
The MSCI Asia Pacific Index added 0.8 per cent as of 9:56 a.m. in Tokyo. Shanghai Composite was up 0.24 per cent, Hang Seng was up 0.27 per cent and Nikkei 225 was trading higher by 0.95 per cent at 07:51 AM IST.
The firm closing of the US stock markets on Wednesday may also bolster domestic sentiment during early trade. All eyes will be on the EU summit which begins in Brussels today. On the domestic front, the expiry of the June F&O contracts may cause some volatility.
The key domestic benchmarks ended on a positive note on Wednesday tracking firm global cues. The Sensex traded range-bound for most of the session ahead of the June F&O expiry on Thursday.
Asian markets ended higher on Wednesday amid speculation that China may bolster stimulus to spur growth in Asia's largest economy. Globally, investors are eying the crucial EU summit beginning on Thursday where leaders will look to resolve Europe's deepening debt turmoil that threatens to engulf the entire world economy.