The Bombay Stock Exchange benchmark Sensex gained 24 points in early trade Thursday on the back of buying by funds triggered by firming global markets.
The 30-share index, which rose by 122.21 points on Wednesday, moved up by 24.36 points to 13,716.88.
Similarly, the wide-based National Stock Exchange's index Nifty rose by 11.35 points at 4,172.60.
Market sentiment was influenced by firming trends in global markets as Warren Buffet's plan to invest at least five billion US dollar in Wall Street firm Goldman Sachs, allayed some fears about the world's troubled financial sector, traders said.
They said, however, market participants were cautious ahead of inflation data to be released on Thursday and expiry of September contract in the derivatives segment.
Major gainers, which supported the Sensex were Larsen and Toubro, HDFC Ltd, ICICI Bank, HDFC Bank, State Bank of India, Tata Power, Maruti Suzuki and Tata Steel.
Meanwhile, Hong Kong's Hang Seng index rose 0.2 per cent in early trade.