All the sectors were trading in green and the rally was led by oil and gas, banking and auto stocks.
The 30-scrip Sensitive Index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,776.54 points, was trading at 25,818.21 points (at 09.17 a.m.) in the early session, up 176.65 points or 0.69 percent from the previous day's close at 25,641.56 points.
The Sensex touched a high of 25,823.77 points and a low of 25,769.21 points in the trade so far.
The S&P BSE oil and gas index surged by 140.67 points, bankex gained 122.83 points and auto index inched up by 103.09 points.
The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading 41.85 points or 0.55 percent up at 7,705.75 points.