At 10:21 am, the Sensex traded 460.78 points - or 1.19 per cent - higher at 39,054.30 while the Nifty was at 11,571.00, up 130.80 points - or 1.14 per cent - from its previous close.

Top percentage gainers on the 50-scrip benchmark index at the time were Indian Oil, ICICI Bank, Kotak Mahindra Bank, UPL and Tata Steel, trading between 2.96 per cent and 5.26 per cent higher.

ICICI Bank, HDFC Bank and Kotak Mahindra Bank were the top contributors towards gain in the Sensex. The three alone contributed more than 300 points towards the surge in the index.

The Nifty Bank index - comprising shares of 12 major lenders in the country - jumped as much as 3.83 per cent. Other prominent gainers in Nifty Bank index included Bank of Baroda, Punjab National Bank and State Bank of India, rising as much as 4.28 per cent, 3.32 per cent and 3.44 per cent respectively.

Indian Oil Corporation shares jumped nearly 6 per cent after crude oil prices fell more than 1 per cent overnight. In the international market, crude oil prices fell for a second straight day of losses after US crude stockpiles unexpectedly rose and as Saudi Arabia maintained a faster-than-expected recovery of its oil production.

The rupee started the day at 70.99 and edged higher to 70.90 against the US dollar in early deals. Falling crude oil prices supported the rupee, say analysts. India meets more than 80 per cent of its oil requirement through imports.

The derivatives contracts (futures & options) for the current month are due to expire at the end of Thursday's session.

Equities in other Asian markets edged higher as hopes the US and China may soon end their year-long trade war boosted demand for riskier assets while worries about a US presidential impeachment bid ebbed.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent. Japan's Nikkei rose 0.45 per cent.