The 30-share BSE index was trading 145.45 points or 0.28 per cent higher at 52,734.16 in initial deals. Similarly, the broader NSE Nifty advanced 49.70 points or 0.32 per cent to 15,822.45.

IndusInd Bank was the top gainer in the Sensex pack, rising over 1 per cent, followed by Maruti, Titan, Tata Steel, HUL and Infosys.

On the other hand, Kotak Bank, Asian Paints, UltraTech Cement and HCL Tech were among the laggards.

In the previous session, Sensex settled 14.25 points or 0.03 per cent higher at 52,588.71, and Nifty rose 26.25 points or 0.17 per cent to close at 15,772.75Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs 1,027.94 crore on Tuesday, as per provisional exchange data.

According to Binod Modi Head-Strategy at Reliance Securities, domestic equities continue to look good as of now. Indian markets witnessed brisk recovery this week so far led by improved prospects of economic rebound and sustained recovery in corporate earnings.

US markets extended gains as the Federal Reserve Chairman Jerome Powell’s testimony offered comfort to investors, said Modi.

"Powell reiterated his view that recent jump in inflation would prove transitory and stated that Fed will do everything to support the economy as long as it takes to complete the recovery process. He further stated that the Central Bank would be patient before scaling back its soft monetary policy.

"This certainly has given some confidence that a reversal in policy rates or a bond buying programme is not going to happen soon. Further statements of Fed staffers will be watched out in coming days, which have been mixed so far," he noted.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with gains in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.60 per cent higher at USD 75.26 per barrel.