Fresh buying was seen in metal, media, banking and auto stocks, while FMCG index is the only loser on the sectoral index.
The Sensex surged 267 points at 36,740 levels and the Nifty rose 100 points to trade at 10,841 levels.
Among major gainers, Grasim surged 6.5%, Yes Bank and Vedanta jumped 6% each and Zee climbed by 5.7%.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were flat ahead of the speech by Federal Reserve chairman Jerome Powell, awaiting possible clues on interest rate cuts.
European markets also opened higher with London's FTSE 100 and Frankfurt's Dax 30 gaining up to 0.7%.