Benchmark indices opened the day higher, as Asian markets saw some recovery despite the US and European markets closing lower.
The Sensex was trading with gains of 102 points, while the Nifty rallied 29 points in trade.
Shares in Bharti Airtel gained after the stock was upgraded by a leading brokerage firm.
State Bank of India was trading higher after reports that two companies may pick the bank's 5 per cent stake in the National Stock exchange (NSE).
Shares in HDIL gained after reports that the company is in talks to sell 3-4 land parcels near Mumbai as it looks to bring down its net debt.
PSU Banking stocks which saw a sharp rally on Wednesday were once again in the limelight.
Midcap stocks were also trading higher with GMR Infra and Sun TV among the early gainers.
Meanwhile, the rupee opened slightly higher at 67.25 to the US dollar. Analysts expect the currency to trade in a tight range through the day.