The Sensex traded 185 points higher at 39,242 and the NSE Nifty 50 Index rose 0.33 per cent or 39 points to 11,752 on Wednesday morning hours.
The experts says the buying of Foreign institutional investors have been the reason behind the rise. In March, the foreign portfolio investors bought shares worth Rs. 33,980.56 crore on top of shares they bought worth Rs.17,220 crore in February, according to data compiled by NSDL.
Brightening prospects of Prime Minister Narendra Modi and his ruling Bharatiya Janata Party returning to power also boosted the investor confidence, traders said. In the Nifty 50 basket of shares, 30 were trading higher while 19 were among the losers.
Indiabulls Housing Finance, InducInd Bank, Tata Motors, Adani Ports, HDFC, Bharti Airtel, JSW Steel, Yes Bank and Maruti Suzuki were among the gainers. On the other hand, Bharat Petroleum, Indian Oil, Eicher Motors, Infosys, Tech Mahindra, Zee Entertainment and Britannia Industries were among the laggards.
Eight of 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty PSU Bank Index's 0.8 per cent gain. Financial Services, Realty, Bank, Private Bank and Auto Indexes on the NSE also rose between 0.6 and 0.8 per cent each.
On the flipside, measures of Media, Information Technology and Pharma shares were trading lower.