Markets ended the day higher following Asian peers, with the 30-share BSE Sensex up 93 points to 17,277 and the 50-share NSE Nifty gained 26 points at 5,242.
Asian bourses, rose amid speculation that China may bolster monetary stimulus to spur growth in the world"s second largest economy.
Shares of power equipment major, Bhel, surged today on reports that the government was considering import duty on power equipment.
However, shares of Maruti Suzuk, India's largest car maker plunged today, following a clash between workers and management, which led to the Manesar plant being shut.
Among sectoral indices, all the sectors were in the green except FMCG and Auto.
Shares in Europe were trading in positive terrain. The UK's FTSE, the German DAX and the French CAC were all trading higher between 0.30% to 1.00%.
Among the shares that gained ground in morning trade were Cairn India, BPCL, Infosys and IDFC.
Stocks that failed to lure investors in early trade were Maruti Suzuki, Bank of Baroda, Bharti Airtel and Kotak Mahindra.