Benchmark indices surged in trade after US Fed Chairperson Janet Yellen said that caution should be exercised, while raising interest rates.
This led to a rally in the US markets with the Dow Jones hitting a new 2016 high. The Sensex was trading with gains of 180 points, while the Nifty rallied 58 points in early trade.
Early losers from the Nifty space were HDFC and Tech Mahindra. In fact, these were the only 2-losers in a buoyant market.
Mid cap stocks also saw good buying interest with the index up nearly 1 per cent in trade. Leading the set of gainers was Just Dial, which rallied almost 5 per cent in early trade.
Other notable gainers was Hindustan Zinc and Adani Power.
Meanwhile, Asian markets were mostly trading higher led by gains in the Shanghai Composite and the Hong Kong's Hang Sang. The rupee was last seen trading at 66.45 to the US dollar.