The Sensex traded 107 points or 0.54 per cent higher at 19,781, while the Nifty traded at 6,003, rising 32 points as of 09.30 a.m.
Strong FII flows have added to bullish sentiments in equities, while a surge in global stocks on the back of upbeat U.S. labour force report has added legs to the current rally.
What experts say:
Market analyst Sarvendra Srivastava expects an extension of the bullish move with targets around 6,150. The Nifty has short term support at 5,850 levels, he said.
However, Shrikant Chouhan, Senior Vice President at Kotak Securities expects the Nifty to be range bound between 5,900-6,000 levels.
Stocks in focus:
Banking stocks recovered today, while high beta realty stocks also gained over 1 per cent. IT stocks, however, fell marginally after five straight days of gains.
40 stocks traded higher on the Nifty, led by private lender ICICI Bank, which rose nearly 2 per cent. Realty major DLF, power utility NTPC and drug maker advanced over 1 per cent.
Reliance Industries shares rose 1.25 per cent while two-wheeler maker Hero MotoCorp saw buying interest for a second straight day.
Coal India, the top Nifty loser, slipped over 1 per cent. Utility vehicle maker M&M traded 0.9 per cent lower. Cement stocks - ACC and Ambuja - extended losses to a third session on the back of weak Q4 earnings.
Asian stock markets were muted Tuesday as cheer over the better-than-expected U.S. jobs report faded. Japan's benchmark stock index was the exception, surging 2.6 percent to 14,083.26 as it reopened following a long weekend holiday.
Hong Kong's Hang Seng rose 0.1 percent to 22,941.76. Benchmarks in Indonesia, Singapore and New Zealand also rose.
(With inputs from agencies)