The Bombay Stock Exchange benchmark Sensex rose by 125 points in opening trade on Thursday on buying in metals and capital goods sector stocks by foreign funds on firming trends in global markets.
The 30-share index rose by 125.45 points, or 0.75 per cent, to 16,802.49 points with metals, banking, IT and capital goods stocks leading the rally. The BSE barometer had gained over 460 points in the past two sessions.
The wide-based National Stock Exchange index Nifty gained 35 points, or 0.70 per cent, to 4,993.40 points. It touched a high of 4,998 points.
Brokers said sustained buying by foreign funds bolstered by overnight gains on the US markets on expectations of early global economic recovery, mainly buoyed the trading sentiments on the domestic bourses.
The US Federal Reserve Chairman, Ben S Bernanke, said the worst US recession since the 1930s has probably ended.
Major gainers were Infosys Technologies, Tata Consultancy Services, Wipro, ICICI Bank, State Bank of India, Sterlite Industries, Tata Steel, ITC Ltd, Larsen and Toubro, Mahindra and Mahindra, Tata Motors and Maruti Suzuki.
Hong Kong's Hang Seng rose 1.75 per cent and Japan's Nikkei was up by 0.91 per cent in the morning trade.
The US Dow Jones Industrial Average closed 1.12 per cent higher in Wednesday's trading.