The BSE Sensex climbed more than 1 percent early on Thursday, joining a rally across Asia after moves by the International Monetary Fund to help tackle the eurozone debt crisis.
Bharti Airtel fell more than 2 percent after a 10.67 billion rupee tax demand by the government. The company, which operates telecoms services in 19 countries across Asia and Africa, said it would challenge in court the tax demand over payments to international telecoms operators.
At 9:21 a.m., the main 30-share BSE index was up 1.18 percent at 16,648.61, with all but one of its components trading higher.
The 50-share NSE index was up 1.15 percent at 5,013.80.