The Bombay Stock Exchange benchmark Sensex gained over 191 points in opening trade on Thursday, extending yesterday's rally on increased capital inflows by foreign funds.
The 30-share index, which gained 54.28 points in the previous session, gathered another 191.23 points, or 1.11 per cent at 17,387.04 points.
Metal, auto, realty and banking sector stocks were leading the rally.
The wide-based National Stock Exchange index Nifty also rose by 44.00 points, or 0.85 per cent, to 5,200.65.
Marketmen said double-digit growth in industrial output for the sixth consecutive month at 13.5 per cent in March buoyed trading sentiments.
Besides, overnight gains in the US market and strong opening on Asian bourses, as concerns about Greece's debt crisis eased also triggered buying activity on the domestic bourses, they added.
Among major gainers, Reliance Industries was up 0.65 per cent to Rs 1,089.05, Reliance Infra by 1.66 per cent to Rs 1,017.20, Tata Motors by 2.30 per cent to Rs 821.25, Sterlite Industries by 1.28 per cent to Rs 737.70, Tata Steel by 1.15 per cent to Rs 591.05, State Bank of India by 0.82 per cent to Rs 2,343 and Bharti Airtel by 2.66 per cent to Rs 268.50.
Meanwhile, Hong Kong's Hang Seng index gained 1.25 per cent and Japan's Nikkei was up 1.49 per cent in the morning trade today.
The US Dow Jones Average ended 1.38 per cent higher in yesterday's trade.