Encouraging Q1 corporate earnings as well as renewed FII buying interest along with positive global cues supported the market sentiment.
However, the realty, power, consumer durables and banking counters saw intense profit-booking.
The 30-share index Sensex opened lower at 25,861.47 and traded between 25,972.62 and 25,850.51 before quoting at 25,947.44 points at 1010 hours.
It showed a gain of 66.67 points or 0.26 per cent from its last close.
The NSE 50-share barometer Nifty also gained 21.25 points or 0.28 per cent to 7,748.30 at 1010 hours.
Major gainers were Hindustan Unilever 2.06 pct, ONGC 1.42 pct, ITC 1.35 pct, BhartiAirtel 1.15 pct, SunPharma 1.12 pct, RIL 0.96 pct and HDFC Bank 0.63 pct.
The notable losers were BHEL 4.92 pct, Hindalco 1.56 pct, Tata Power 1.10 pct, L&T 1.07 pct, Tata Steel 0.68 pct and NTPC 0.68 pct.
Most Asian stocks were trading higher, as key benchmark indices in Taiwan, Japan, Indonesia and South Korea rose by 0.16 to 0.58 per cent.
Key benchmark indices in Hong Kong, China and Singapore fell 0.19 to 0.63 per cent.
Meanwhile, Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 370.83 crore yesterday, as per provisional data from the stock exchanges.