Benchmark indices were trading higher after the US Fed Minutes did not hint at any immediate interest rate hikes in the US.
The Sensex was trading higher by 126 points or 0.4 percent at 28,132 points, and the Nifty was up 34 points in trade.
Leading the set of gainers in trade were Dr Reddys and Adani Ports, while the losers were Wipro and GAIL.
Shares in Gammon India were up a huge 9 per cent, after the company bagged NHAI orders worthRs 870 crores.
Uttam Galva rallied 8 per cent after the company signed a USD 150 million agreement with China's Tidfore heavy equipment group.
PSU Banking stocks continued to rally in trade with Andhra Bank, Canara Bank and Punjab National Bank among the early gainers in trade.
The rupee opened at 66.85 and was trading relatively steady. Most Asian markets led by the Shanghai Composite, Strait Times and the Seoul Composite were traing with gains.