Market observers said that low crude oil prices also aided the market's northward movement.
Domestically, healthy buying was observed in automobile, capital goods, banks, oil and gas and metal stocks, whereas telecom scrips came under selling pressure.
At around 11.15 a.m., the S&P BSE Sensex traded at 39,676.32 points, higher by 426.12 points or 1.09 per cent from the previous close of 39,250.20 points.
It had opened at 39,293.49 points and has so far touched an intra-day high of 39,682.37 points and a low of 39,254.12 points.
Similarly, the Nifty50 of the National Stock Exchange traded at 11,756.15 points, higher by 129 points or 1.11 per cent from its previous close.
"Indian markets opened firm on Tuesday after being closed on Monday. Telecom stocks remained under pressure as an after effect of the recent adverse Supreme Court decision on AGR. Tata Motors continued to rise after JLR posted better than expected results and brokerages upped their target price on Tata Motors," HDFC Securities' Retail Research Head Deepak Jasani told .
"Metal stocks were in demand as chances of an early US-China deal on trade brightened. Asian markets gave up part of the early gains but were still trading largely in the positive. Nifty is eyeing new recent high territory. Index-wise, the upmove has been gradual as compensating moves in stocks are holding back a sharp rise."
( With inputs from IANS )