The benchmark indices opened on a strong foot in early morning trade after India defied expectations on Tuesday to retain the title of the world's fastest growing economy even after the shock of the demonetisation drive.
At 9.45 AM, the S&P BSE Sensex was ruling 28,968, surging 225.16 points and the Nifty50 was trading 8,942, rising 63.30 points.
"We reiterate that our directional view remains unchanged (bullish) and we expect the index to hit new all time high soon," said an Angel Broking report.
Axis bank, HDFC, Hero Moto Corp and Sun Pharma were leading the markets gains on the BSE.
Tata Motors was the biggest laggard down 0.50 per cent.
"For the coming session, 8850 - 8840 would act as a strong support and we expect buying emerging from this strong support zone of '89 EMA' on hourly chart. Hence, any dip would be a buying opportunity and meanwhile as witnessed in today's session, one should keep concentrating on individual stocks which are likely to fetch higher returns," added the report.
Q3 GDP report
India's Gross Domestic Product (GDP) for the third quarter ending Decemeber 2016 grew at 7 per cent defying all fears and warnings that of any effect from demonetisation.
However, this figure still remainded the lowest expansion in four years.
But the Q3 numbers have put India back on the spot as the fastest growing major economy and is higher than China's 6.8 percent growth for the last three months of 2016.
India's fiscal deficit touched Rs 5.64 lakh crore as on January 31st, 105.7 per cent of the full-year target, mainly due to lower realisation of non-tax revenue.
The government had budgeted a fiscal deficit of Rs 5,33,904 crore for the current financial year ending March.
Asian markets were upbeat on Wednesday as attention turned to US President Donald Trump's speech to Congress for clues on what might be ahead for trade, regulations and taxes.
At 10 AM (IST), China's Shanghai Composite was trading 0.38 per cent higher and Hong Kong's Hang Seng Index was ruling 0.20 per cent.
Japan's Nikkei gained 1.27 per cent to trade 242.28 points up.