Benchmark indices opened higher in early trade, as most of Asia was trading with good gains, after US Markets rebounded on the back of gains in crude oil.
This lifted sentiments across Asia and India, with the Sensex trading with gains of 243 points, while the Nifty was up 68 points in trade.
Among the top gainers from the Sensex in early trade were Hero Motor Corp, State Bank of India, Bhel and Maruti.
Lupin and HDFC were the only shares that declined in trade. Welspun India was higher despite reports that the company was being sued in the US, after it did not supply bedsheets that were made of Egyptian cotton, as it was to.
IT stocks were also among the early gainers, with Infosys, TCS and Wipro all trading higher.
Shares in Den Networks jumped after the company said that the board would consider a preferential issue of shares.
Most of the banking shares were trading higher, on hopes that the Reserve Bank of India would cut interest rates going forward.
Meanwhile, the rupee opened trade at 66.86 to the US dollar. There was significant depreciation in the rupee, after reports of a likely devaluation in the rupee to boost exports.