A cautious undertone prevailed as investors awaited the minutes of the U.S. Federal Reserve's minutes of the July meeting later today for guidance on future rate hikes.
The benchmark S&P BSE Sensex rose 207 points, or 0.4 percent, to 60,050 in early trade, while the broader NSE Nifty index was up 65 points, or 0.4 percent, at 17,890.
Financials and auto stocks paced the gainers, with Hero MotoCorp, Bajaj Finance, Eicher Motor and HDFC Life climbing 2-3 percent.
NTPC jumped nearly 3 percent on news it plans to raise Rs 5,000 crore via term loans from financial institutions.
Mahanagar Gas fell 2 percent after cutting prices of PNG and CNG.
Bajaj Hindusthan Sugar slumped 16 percent as SBI filed an insolvency petition against the country's largest sugar firm.
