Equity benchmark Sensex advanced over 200 points in early trade on Wednesday tracking gains in index-heavyweights Reliance Industries and ITC amid sustained foreign fund inflows.
After touching a high of 35,679.74, the 30-share index was trading 220.35 points, or 0.62 per cent, up at 35,650.78.
Similarly, NSE Nifty rose 56.45 points, or 0.54 per cent, to 10,527.45.
Asian Paints was the top gainer in the Sensex pack, rallying around 4 per cent, followed by ITC, Bajaj Auto, Bajaj Finance, NTPC and Titan.
On the other hand, HCL Tech, IndusInd Bank, PowerGrid and Infosys were among the laggards.
In the previous session, the BSE barometer rallied 519.11 points, or 1.49 per cent, to close at 35,430.43; while the NSE Nifty soared 159.80 points, or 1.55 per cent, to end at 10,471.
On a net basis, foreign institutional investors bought equities worth Rs 168.96 crore in the capital market on Tuesday, provisional exchange data showed.
According to analysts, news of disengagement between India and China has relieved participants, after days of heated arguments.
Further, positive sentiment in global markets and unabated foreign fund inflows also supported domestic equities, they said.
On the global front, bourses in Shanghai and Seoul were trading with gains in early deals, while those in Hong Kong and Tokyo were in the red.
Stock exchanges on Wall Street ended on a positive note in overnight session.
International oil benchmark Brent crude futures fell 0.52 per cent to USD 42.41 per barrel.