The benchmark Sensex rose by 73 points in early trade on Thursday on the back of sustained foreign fund inflows and increased buying by retail investors.
The 30-share index, which had rallied 322.79 points in the previous session, gained another 73.40 points, or 0.25%, to 28,578.33, with oil and gas, consumer durable, metal, healthcare, power and capital goods sectors trading in the positive zone with gains up to 1.26%.
The NSE Nifty also inched higher by 18.45 points, or 0.21%, to 8,651.95.
Brokers said sentiments remained upbeat on hopes of passage of the key GST bill and a firming trend at other Asian markets influenced trading sentiments.
Optimistic buying by participants in some bluechip companies ahead of quarterly earnings, too supported the upside, they said. Stocks of Wipro Ltd, country's third-biggest software services provider, was trading 0.79% higher at Rs 590 ahead of quarterly earnings.
Among other Asian markets, Japan's Nikkei rose 0.50%, while Hong Kong's Hang Seng index rose 0.10% in early trade on Thursday. China's Shanghai Composite index was also up 0.18% in morning trade. The US Dow Jones Industrial Average closed 0.38% lower on Wednesday.