Benchmark indices opened the day sharply higher led by a solid rally in global markets on hopes of further stimulus in the EU from the European Central Bank.
The Sensex was trading higher by 233 points at 27,520 points, while the Nifty rallied 63 points in trade breaching the 8300 points mark.
Shares in Wipro dropped 1 per cent after the company's guidance disappointed investors, though it Q2 numbers were in line with estimates. Shares in Idea Cellular also dropped after its results lagged estimates.
Nifty gainers included Gail, Cairn India and ONGC. Bajaj Auto continued its rally for the second straight day after a spectacular set of results.
Banking stocks continued to see buying interest with stocks like ICICI Bank, State Bank of India and Bank of Baroda among the early gainers.
Mid cap stocks also saw good buying interest with notable gainers from the space being Jindal Steel, JP Associates and Kansai Nerloac.
Shares in Shriram Transport surged after reports that RBI has allowed Foreign Portfolio Investors to invest in the company.
Meanwhile, the rupee opened strong at 64.87 to the US dollar in trade.