IT, teck, capital goods, consumer durables and FMCG stocks were leading the rally.
The NSE Nifty was also trading higher by 20.25 points, or 0.18 per cent, at 10,761.80.
Brokers said that the market mood remained buoyant, bolstered by foreign institutional investors' buying coupled with a firming trend at other Asian markets.
They said, however, concerns prevailed over trade deficit ballooning to a three-year high.
Trade deficit or difference between imports and exports was USD 14.88 billion in December, up about 41 per cent year- on-year, as crude oil and gold import bill inflated, the commerce ministry data showed.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth Rs 32.92 crore on net basis while domestic institutional investors (DIIs) sold equities to the tune of Rs 173.28 crore yesterday, provisional data showed. In the Asian region, Hong Kong's Hang Seng was up 1.08 per cent, Japan's
Nikkei gained 0.55 per cent while Shanghai Composite index edged higher by 0.28 per cent in early trade today.
The US markets were shut yesterday for the Martin Luther King Jr. holiday.