Equity benchmark Sensex climbed over 170 points in early trade on Wednesday, tracking gains in index heavyweights Infosys, HCL Tech and L&T amid a mixed trend in global markets.
Besides, a strong rupee against the US dollar and continued foreign capital inflows also supported the domestic markets, traders said.
The 30-share BSE index was trading 173.62 points or 0.28 per cent higher at 61,358.77 in initial deals. Similarly, the broader NSE Nifty rose 56.70 points or 0.31 per cent to 18,259.50.
Dr Reddy's was the top gainer in the Sensex pack, rising 1.53 per cent, followed by Nestle India, HCL Tech, Infosys, IndusInd Bank, L&T and ITC.
On the other hand, Tech Mahindra, HDFC twins, Bajaj Finance, HUL and PowerGrid were the losers.
In the previous session on Monday, Sensex ended 234.79 points or 0.39 per cent higher at 61,185.15. The NSE Nifty rose by 85.65 points or 0.47 per cent to end at 18,202.80 points.
Domestic equity markets were closed on Tuesday on account of Gurunanak Jayanti.
The rupee gained 42 paise to 81.50 against the US dollar in early trade on Wednesday.
Foreign institutional investors (FIIs) remained net buyers in the Indian capital market on Monday, as they bought shares worth Rs 1,948.51 crore, as per exchange data.
International oil benchmark Brent crude was trading 0.14 per cent lower at $95.23 per barrel.
In Asian markets, bourses in Tokyo, Shanghai, and Hong Kong were in the red, while Seoul was trading with gains.
Equities on Wall Street ended significantly higher in the previous session on Tuesday.