The 30-share Sensex, which had lost 28.36 points in yesterday's volatile trade, recovered by 105.99 points, or 0.62 per cent to 17,275.90 in early morning trade.
The wide-based National Stock Exchange index Nifty also moved up by 37.35 points, or 0.72 per cent, to trade at 5,160.60 points.
Brokers said fresh buying in select heavy-weight stocks by funds as well as retail investors amid firming trend on the Asian markets mainly helped the bourses trade in the positive terrain.
Stocks of oil and gas, metals, auto and realty sectors were major gainers with increased interest from the traders.
Among auto stocks, the country's largest car maker, Maruti Suzuki, continued its upward journey and gathered another 0.90 per cent to Rs 1,627 after posting sales growth for the ninth consecutive month this year and on reports that the company may raise production.
Other gainers were Reliance Industries up 0.52 per cent to Rs 1,106, Tata Steel 0.53 per cent to Rs 578.45, DLF Ltd by 0.36 per cent to Rs 385.90, Bharti Airtel by 1.30 per cent to Rs 308.70 and State Bank of India 0.37 per cent to Rs 2,316.
The Hong Kong's Hang Seng Index was up 0.65 per cent, while Japan's Nikkei rose 2.87 per cent in morning trade on Thursday