Indian shares joined the global rally on Thursday, with the benchmark Sensex index rising above 32,000 level, led by lenders such as ICICI Bank.
At 0628 GMT, S&P BSE Sensex rise 0.68 percent to 32,020 while the broader NSE Nifty gained 0.57 percent to 9,872.
Asian shares rallied after Fed chair Janet Yellen signaled gradual monetary tightening.
The MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 percent to its highest since May 2015.
Sentiment, back home, was upbeat amidst hopes of an interest rate cut by the central bank after retail inflation hit a historically low level of 1.54 percent in June.
Investors will now watch out for corporate earnings with software exporter Tata Consultancy Services scheduled later today and Infosys due on Friday.
Top gainers on the Sensex were ITC, ICICI Bank, Larsen & Toubro and HDFC, rising between 1 percent to 2.6 percent.
Sintex Industries climbed 9 percent after Morgan Stanley France bought 3.57 million shares via block deal.
Speciality Restaurants advanced 1.7 percent after signing franchise pact with Resolute Restaurant.
Market breadth was in the favour of gainers, with about 2 stocks advancing to every 1 stock that declined.
