Continuing its rally, the benchmark BSE index Sensex shot up by 123 points in early trade on Thursday on sustained buying by foreign and domestic funds.
The BSE 30-share index, which had closed 201.66 points higher on Wednesday, gathered another 123.14 points at 10,740.41 in the first first five minutes of trading.
Similarly, the National Stock Exchange index Nifty rose by 38.80 points at 3148.95.
Stock brokers said that apart from firming Asian markets, short-covering by players helped trading sentiments to improve.
All the 30 shares on the Sensex and 50 on the Nifty were in positive zone while all heavy-weight blue-chip shares recorded hefty gains.