Benchmark indices have started the trading session on a higher note tracking gains in Asian stocks along with buying demand among banking and auto shares.
By 9:30, the Sensex gained by 79 points at 19,860 levels whereas the Nifty surged 25 points at 6,025 mark.
On the global front, US markets surged to 5-year high on Friday with the Dow closing above 14,000 for the first time since October 2007, and the S&P touched its highest since December 2007 to end at 1,513.17.
Asian shares edged higher on Monday, buoyed by US data which maintained expectations for a mild recovery and continued loose Federal Reserve monetary policy to support it, bolstered by solid manufacturing data from Europe and China.
Back home, markets are likely to take cues from advanced economic growth estimates for the current fiscal year (FY13) which will be released on Thursday and third quarter earnings of blue chips like Mahindra & Mahindra and Hindalco, analysts suggest.
On the sectoral front, BSE Realty, Auto, Consumer Durable and Bankex indices have surged by nearly 1% each. Sectors like Oil & gas, Metal, PSU, Capital Goods, Healthcare, Power, TECk and IT are trading marginally positive.
The main gainers on the Sensex at this hour include Tata Motors, ICICI Bank, Hindalco, JSPL, Bajaj Auto, Sterlite, Sun Pharma, Hero Moto and ONGC, all gaining between 1-2%.
On the losing side, BHEL is the top Sensex loser, down almost 1%.
Among other shares, Oil India is trading higher by 3% at Rs 539 after the offer-for-sale (OFS) got good response oversubscribed by over two times.
The broader markets are performing in line with the benchmark indices, both gaining by nearly 0.5%.
The overall market breadth in BSE remains positive with 821 shares advancing and 284 shares declining.