BSE benchmark Sensex surged over 126 points and NSE Nifty reclaimed the 8,800-level in early trade today as domestic investors and foreign funds indulged in sustained buying ahead of key industrial output numbers to be released later in the day.
Besides, better-than-expected earnings by some more companies also fuelled the positive sentiment.
With regards to global cues, firming trend at other Asian bourses, tracking overnight gains on the US markets after President Donald Trump promised to release a much-anticipated plan for tax cuts soon, boosted trading momentum here.
The 30-share Sensex was higher by 126.48 points, or 0.44 per cent, at 28,456.18 with sectoral indices led by banking, metal, capital goods, health-care an IT trading in the positive zone.
The gauge had gained 39.78 points in yesterday's trade.
The broader NSE Nifty too rose by 44 points, or 0.50 per cent, to 8,822.10.
Brokers said building up of positions by participants ahead of key economic data - industrial production (IIP) for December - to be released after market closing today, had a significant influence on the trading pattern on domestic bourses.
Globally, Japan's Nikkei climbed 2.36 per cent, while Hong Kong's Hang Seng moved up 0.51 per in early trade today.
China's main Shanghai Composite Index was also up by 0.33 per cent.
The US Dow Jones Industrial Average ended at record high by surging 0.59 per cent in yesterday's trade.