The Sensex after a positive openeing following global cues touched a high of 16,493. However, the index fell from the high and touched a low of 16,317.
The Sensex is now up 121 points at 16,410.
The Nifty is at 4,893 - up 39 points.
US markest had closed in the green on Wednesday. The Dow Jones ended at 10236, stronger by 41 points or 0.4%, Nasdaq closed at 2221, higher by 17 points or 0.8%.
Asian markets are also up in morning trades. The Hang Seng has gained 286 points at 20,319. Nikkei has jumped 133 points to 10,385.
Metal and realty indices have jumped 2% each to 16,380and 3,421, respectively. However, the FMCG index is marginally in red.
Tata Steel has gained 2.5% in early trades at Rs 572. Other metal stocks are also up. Hindalco has added 2% to Rs 153. Sterlite has moved 1.2% to Rs 779.
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IT stocks have gained. Wipro has advanced 2.5% to Rs 671. TCS is up 1.5% at Rs 754 and Infosys has added 1.5% to Rs 2,534.
Auto stocks have also moved up. Mahindra & Mahindra and Tata Motors have jumped 1.6% each to rs 1,029 and Rs 728, respectively.
Other gainers include Sun Pharma, Jaiprakash Associates, HDFC, NTPC, SBI and Reliance.
However, Larsen & Toubro has slipped 1.6% to Rs 1,436.