The S&P BSE Sensex index rose as much as 431.31 points or 0.88 per cent to touch 49,381.07 in early deals, and the broader NSE Nifty 50 benchmark climbed to as high as 14,852.55, up 127.75 points or 0.87 per cent from its previous close.
Stocks in other Asian markets opened slightly higher, with Japan up 0.3 per cent, South Korea 0.2 per cent and Australia 0.2 per cent.
Overnight on Wall Street, benchmarks gained on positive economic data, with the Down Jones Industrial Average hitting a record high. The S&P500 and the Nasdaq Composite indices rose 0.82 per cent and 0.37 per cent, respectively.
Crude oil rates reversed gains, under pressure from rising Covid-19 infections in India and elsewhere. WTI crude traded just below $65 a barrel.
THIS IS A DEVELOPING STORY. MORE TO COME…