A new record closings for the US S&P 500 pushed Asian markets significantly higher with the Japanese Nikkei leading gainers and surging 2.22 per cent. Most other markets were trading extremely firm, with the Hang Sang and Shanghai also up significantly.
The Sensex was trading with gains of 136 points, while the Nifty rallied 44 points in trade.
The Indian rupee opened marginally lower at 71.24 per dollar on Thursday versus Wednesday's close 71.21. Shares in Bharti Airtel were trading higher after a leading foreign brokerage firm upgraded the stock to a buy.
Shares in Oil and Gas stocks, which have been badly battered over the last few days, saw some buying support in trade. In fact, shares in ONGC and Oil India have seen some gains, following a rebound in crude prices.
Shares in Zee Entertainment was up 2 per cent after a near 7 per cent drop on Wednesday. Banking stocks were trading higher ahead of the RBI Monetary Policy Review. Most analysts and economists expect the country's central bank to hold interest rates steady.
Heavyweights, HDFC Bank and Reliance Industries, which have led the 300-point rally on the Nifty, continued to trend higher. Markets are expected to be volatile ahead of the MPC meet.