At 9:17 am, the Sensex traded 54.12 points - or 0.14 per cent - higher at 39,640.53 while the Nifty was up 19.30 points - or 0.16 per cent - at 11,860.85.

Top percentage gainers on the 50-scrip benchmark index at the time were Adani Ports, Tech Mahindra, Dr Reddy's, Infosys and Tata Steel, trading between 0.72 per cent and 1.21 per cent higher.

Infosys, Reliance Industries and ITC were the top contributors to the advances in Sensex.

Market breadth was largely positive with 669 stocks on the BSE trading with gains and 573 struggling with losses. On the NSE, 808 stocks advanced while 697 declined.

Banking stocks were in focus, a day after the Reserve Bank of India (RBI) said the country's financial system "remains stable" despite recent setbacks. The non-performing asset (NPA) cycle has "turned around" with a sharp reduction in the ratio of dud assets to 9.3 per cent, the central bank said in its Financial Stability Report.

The Nifty Bank - a sectoral index on the National Stock Exchange comprising banking stocks - fell as much as 0.18 per cent in early deals. It was last seen trading down 0.15 per cent within first few minutes of trade.

System-wide NPAs decreased to 9.3 per cent in March 2019 from 11.2 per cent a year ago, the RBI noted in its bi-yearly report said. However, the financial market risks continue to be perceived as a "high-risk category" affecting the system, it said.

Market regulator Sebi on the same day reinforced disclosure rules for when the shares in a company are pledged as collateral. Such pledging refers to the use of shares as collateral when investors are seeking to borrow money. It also tightened rules for mutual funds to try to protect minority shareholders and retail investors.

Meanwhile, equities in other Asian markets edged higher in early trade investors clung on to hopes that a highly anticipated meeting between US President Donald Trump and Chinese President Xi Jinping this weekend could lead to easing of trade tensions. The gains were small and underscored uncertainty over whether the talks will produce definitive progress in ending the year-long trade war between the world's two largest economies.