The S&P BSE Sensex recovered from initial losses by surging 196 points on fresh buying mainly in realty, IT, teck, healthcare and consumer durable sectors on the back of higher global cues.
The BSE-30 share index opened higher at 18,424.72, but fell to a low of 18,283.74 on selling in select counters in view of foreign capital outflows yesterday.
However, it recovered immediately to 18,598.80 before quoting 18,596.65 points at 1045 hours.
It showed a net rise of 195.61 points or 1.06 per cent from its last close.
The NSE 50-share barometer Nifty also moved up by 46.50 points, or 0.86 per cent, to 5,455.55 at 1045 hours.
Major gainers were - Tata Steel (2.78 pc), Sun Pharma (2.63 pc), TCS (2.46 pc), HDFC Bank (2.14 pc), Wipro (2.07 pc), ONGC (1.97 pc) and HDFC (1.25 pc).
However, Sesa Goa fell by 2.18 per cent followed by Tata Power (1.88 pc), NTPC (1.88 pc), Coal India (1.58 pc) and Maruti Suzuki (1.41 pc).
Most Asian stocks rose in their early trade following overnight gains in US stocks triggered by data showing that the US economy expanded more rapidly than previously thought in the second quarter.
Key benchmark indices in South Korea, Indonesia, Taiwan and China rose by 0.25 to 1.05 per cent while indices in Singapore, Hong Kong, and Japan fell by 0.06 to 0.48 per cent.
Foreign institutional investors (FIIs) sold shares worth Rs 248.18 crores yesterday, as per the provisional figures issued by stock exchanges.