At 10:15 am, the BSE S&P Sensex was up by 727 points or 1.48 per cent at 49,735 while the Nifty 50 edged higher by 220 points or 1.51 per cent to 14,727.
Except for Nifty realty which dipped marginally, all other sectoral indices at the National Stock Exchange were in the green with Nifty metal up by 2.6 per cent, pharma by 2 per cent, FMCG by 1.8 per cent and private bank by 1.4 per cent.
Among stocks, JSW Steel gained by 3.7 per cent to Rs 461.90 per share while Tata Steel was up by 3.3 per cent to Rs 792.70.
Tata enterprise Titan edged higher by 3.6 per cent, Hindustan Lever by 3.1 per cent, ONGC by 2.9 per cent, Power Grid Corporation by 2.9 per cent and GAIL by 2.7 per cent.
However, Mahindra & Mahindra and Bharat Petroleum Corporation traded with a negative bias.
Meanwhile, Asian shares were mixed as global investors shook off worries about a hedge fund default that roiled global banking stocks overnight.
Wall Street pared earlier losses driven by the banking sector on fears that issues with a defaulting hedge fund could spread throughout the banking sector.
In Asia, the MSCI’s broadest index of Asia Pacific shares outside Japan was marginally higher by 0.08 per cent. Hong Kong’s Hang Seng Index was up by 0.36 per cent.