Updated at 9.30am
The 30-scrip sensitive index (Sensex) of the BSE was ruling 17,204.11 points, up 347 points or 2.05 percent compared to its previous close at 16,857.91 points.
It had moved up substantially in pre-open trade itself.
The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading in the green at 5,174.9 points, up 2.01 percent.
Broader markets too rose. The BSE midcap index was ruling 2.18 percent up and the BSE smallcap index was trading 2.11 percent higher.
The market breadth at the BSE was positive with 1,106 stocks moving up, compared to 162 on the decline and 32 remaining unchanged.
Other major Asian markets too were on the rise, after being battered in the last two sessions over the US sovereign debt downgrade.
The benchmark Japanese Nikkei was up 1.15 percent, the Chinese Shanghai Composite index was ruling 1.83 percent higher, while Hong Kong's Hang Seng had risen 3.2 percent Wednesday.
Source: IANS