Benchmark indices began the day surging in trade as a spike in crude prices led to heavy buying support in frontline indices.
The Sensex was trading with gains of 200 points, while the Nifty was up 63 points in trade. Oil and gas stocks led the rally with ONGC and Oil India among the biggest gainers, following a rally in crude prices.
Banking stocks also saw some buyign support with State Bank of India, ICICI Bank and Bank of Baroda being among the gainers.
The midcap index was up more than one per cent with stocks like JustDial and Unitech among the biggest gainers in trade.
Maruti shares gained on plans to invest a sizeble amount in new cars.
Meanwhile, most Asian markets were trading higher on Thursday, following a rebound on Wall Street overnight. Australia's ASX 200 traded higher by 1.61 percent, while the Kospi was up 0.94 percent.
Meanwhile, the rupee was trading at 67.81 to the US dollar.