ICICI Bank was the top gainer in the Sensex pack, surging around 4 per cent, followed by SBI, IndusInd Bank, HDFC Bank, Tata Steel and HDFC.
Exchange data showed that foreign institutional investors sold equities worth Rs 420.95 crore on a net basis on Thursday.
In the previous session, the Sensex closed 364.36 points or 0.95 per cent higher at 38,799.08, while the broader Nifty jumped 94.85 points or 0.83 per cent to 11,466.45.
The NSE Nifty 50 index was up 0.43% at 11,297.30 by 0352 GMT, while the S&P BSE Sensex was 0.48% higher at 38,234.76
M&M was the top gainer in the Sensex pack, rallying over 4 per cent, followed by L&T, Kotak Bank, SBI, Bajaj Finance, Sun Pharma, ITC and HDFC duo.
According to traders, investors are positive ahead of the Reserve Bank of India's monetary policy outcome, scheduled for later in the day.
The BSE Sensex jumped 238.75 points or 0.64 per cent to trade at 37,258.89; and the NSE Nifty rose 79.15 points or 0.73 per cent to 10,980.85 in opening deals.
According to analysts, market opened on a positive note as fresh foreign fund inflows and stock-specific gains led benchmarks higher.
On a net basis, foreign portfolio investors bought equities worth Rs 1,851.12 crore in the capital market on Wednesday, provisional exchange data showed.
After opening on a tepid note, the 30-share index was trading 309.68 points or 0.93 per cent higher at 33,613.20.