At about 9.30 am, the Sensex was up 156.25 points or 0.47 per cent at 33,105.46 while the NSE Nifty rose 0.48 per cent or 48.95 points to 10,215.65.
All the BSE sectoral indices closed in the green, led by telecom, consumer durables, power, capital goods, auto, oil&gas and realty. On Thursday, the Street shook off bearish sentiments to start regaining from the slump that saw Sensex losing 1,200 points in a week's trade.
The gauge had lost 67.28 points in the previous session.
Trading mood was also impacted as Fitch Ratings on Monday cut the country's GDP growth forecast for the current fiscal to 6.7 per cent from the earlier projected 6.9%.
Top gainers in the Nifty 50 included Bharti Airtel, Maruti Suzuki India, Vedanta, Tata Motors, IndusInd Bank, Hindalco Industries and Adani Ports - up between 1.6 per cent and 3 per cent. The laggards included Coal India (-0.64%), TCS (-0.52%), Cipla (-0.50%), Wipro (-0.34%) and Sun Pharma (-0.26%). SBI, ICICI Bank, Axis Bank, HDFC Bank, Bank of Baroda and Yes Bank fell by up to 1.44 percent.
Meanwhile, an RBI order mandating banks to lower the merchant discount rate they charge on debit cards did not affect sentiment. Polls indicate a victory for the ruling Bharatiya Janata Party (BJP), but with a greatly reduced majority.
"Markets will now look out for the Gujarat election outcome". The stock ended down 2.05 per cent or Rs 4.30 at Rs 205.45. MSCI's broadest index of Asia-Pacific shares outside Japan was barely changed.
The National Stock Exchange's Nifty too was trading higher 57.40 points or 0.56 per cent at 10,179.20. The broader markets remained under pressure, with the small-cap index falling by 0.52% and mid-cap 0.09%.
The US Dow Jones Industrial Average ended 0.29 per cent higher in yesterday's trade.