Benchmark indices opened the day with gains after US indices closed sharply higher a day ahead of the crucial US Fed decision on interest rates.
Most Asian markets followed Wall Street higher even as the US Fed concludes a 2-day meeting in which it will decide whether or not to raise interest rates for the first time in 9 years.
Shares in Sun Pharma rallied after the company's decision to acquire US eye care company InSite Vision. It was up more than 2 per cent in early trade.
Shares in Sadhbhav Engineering were also higher ahead of the listing of group company Sadhbhav Infrastructure.
Top Nifty gainers in trade were Lupin, Hindalco and Axis Bank. NTPC was the only loser from the Nifty stocks in early trade.
Mid cap stocks were also trading higher with stocks like Bata, Crisil and IRB Infra among the early gainers in trade.
India Bulls Housing Finance gained after the board approved an allotment to qualified institutional buyers.
Meanwhile, most of Asia was trading higher with the Hong Kong's Hang Sang and the Korean Kospi among the early gainers.
Most of the markets are awaiting a decision on the US Fed interest rate, which is to be announced on Sept 17. A rate hike could be bad for Indian markets, which have lost substantial ground in the last few months.