Extending on Monday's gains, the benchmark BSE Sensex rose over 114 points in early trade on Tuesday on increased buying by funds and retail investors mainly in oil and gas, banking, capital goods, realty and FMCG sector stocks.
The 30-share barometer gained 114.04 points, or 0.51%, to 22,559.16.
It had gone up by 41.23 points in the previous session. The National Stock Exchange index Nifty was higher by 40.60 points, or 0.61%, at 6,739.95 in the morning trade.
Brokers said sentiments improved as buying by funds and retail investors picked up following overnight gains on the US markets.
They said, however, absence of cues from the Asian region, after the closure of financial markets in Hong Kong and Japan for public holidays, limited the gains on the domestic bourses. Among oil and gas stocks, Reliance Industries was trading 0.66% higher at Rs 951.40, while ONGC up 1.16% at Rs 339.35.
The US Dow Jones Industrial Average ended 0.11% higher in on Monday's trade.