The Sensex was trading higher by 51 points, while the Nifty rallied 17 points in trade. Hero Motor Corp continued to rally for the second straight day, while other notable gainers from the Nifty were Cipla and Tata Power.
Banking stocks were seeing traction in early trade with Axis bank, ICICI Bank and Bank of Baroda among the early gainers.
PSU banking stocks were also having a good session with notable winners being Indian Overseas bank and IDBI Bank.
Tata Steel was trading higher on the back of a Moody's upgrade. Cipla on the other hand gained ground after grant of Salix Pharma rights to Rifaximin complex patents.
Mid cap stocks were having a quiet session in trade with UPL and Reliance Communications among the early gainers.
Nifty stocks that saw some losses in early trade were Dr Reddy's and ITC.
Meanwhile, markets across Asia were trading higher with the Japanese Nikkei seeing substantial gains. Other markets that rallied were the Hong Kong's Hang Sang and the Singapore's Strait Times.