Equity benchmark BSE Sensex rose over 100 points in opening session on Thursday led by gains in metal, energy and banking stocks amid positive cues from Chinese markets.
The 30-share BSE index was trading 125.84 points or 0.30% higher at 41,431.86. Similarly, the broader NSE Nifty rose 46.55 points or 0.38% to 12,229.05.
Tata Steel was the top gainer in the Sensex pack, rising up to 1.62%, followed by UltraTech Cement, IndusInd Bank, Bharti Airtel, Bajaj Auto and Reliance Industries.
On the other hand, Titan was the top loser, shedding up to 0.94%. NTPC, PowerGrid, Asian Paints and Mahindra and Mahindra were also trading in the red.
In the previous session, the 30-share gauge gained 52.28 points or 0.13% to close at 41,306.02, while the Nifty settled 14.05 points, or 0.12%, higher at 12,182.50
Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 58.87 crore, while domestic institutional investors purchased shares worth Rs 208.47 crore on Wednesday, data available with stock exchanges showed.
According to traders, domestic investors took positive cues from Asian markets after China's central bank announced fresh stimulus for the country's stuttering economy.
Bourses in Shanghai, Hong Kong were trading significantly higher, while those in Seoul were in the red. Stock exchanges in Tokyo remained closed for New Year holidays.
Brent futures, the global oil benchmark, slipped 0.32% to USD 66.20 per barrel.
Meanwhile, the rupee depreciated 9 paise to 71.31 against the US dollar in morning session. On Wednesday, it had closed at 71.22 against the dollar.
Traders said rise in crude oil prices weighed on the domestic unit, while sustained positive opening in domestic equities supported the rupee and restricted the fall. Meanwhile, brent crude futures, the global oil benchmark, rose by 0.30% to USD 66.20 per barrel.