The Sensex was trading higher by 166 points, while the Nifty gained 51 points in early trade. Banking stocks were once again leading the rally with ICICI Bank, Axis Bank, State Bank of India and Punjab National Bank among the early gainers.
Technology stocks were subdued despite a strong showing by the NASDAQ which touched a fresh year high.
Infosys declined in early trade, while Tata Consultancy Services was up only marginally. Among the only other losers from the Nifty apart from Infosys was Cairn India.
PSU banking stocks continued to see strong trading interest with early gainers from the pack being Syndicate Bank, Allahabad Bank, Oriental Bank of Commerce and Union Bank of India.
Wockhardt which slumped 8 per cent on Wednesday following US import alert at one of its plants continued to see selling pressure. The stock was down another 1 per cent in early trade.
Steel stocks which have rallied substantially in the last few trading sessions were having a quiet day of trade.
Jindal Steel and Tata Steel were trading almost flat.
Voltas continued to rally in trade today after the company received orders aggregating Rs 1000 crores. Havells was trading higher after Bank of America Merrill upgraded the stock.
Meanwhile, markets across Asia were firmly in the green following a new lifetime high witnessed by the Dow Jones.