The Sensex is up 128.89 points or 0.5 percent at 25719.54 and the Nifty is up 44.35 points or 0.6 percent at 7830.45. About 469 shares have advanced, 82 shares declined, and 31 shares are unchanged.
Tata Steel, Hindalco, Vedanta, Sun Pharma and GAIL are top gainers in the Sensex.
The Indian rupee opened higher by 6 paise at 66.26 per dollar against previous close of 66.32.
Asian equity markets followed their Wall Street peers as investors cheered strong US data, a pause in the greenback's rally and higher oil prices.
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