The BSE Sensex rallied about 185 points to 35,877.41 in early session today, buoyed by robust industrial output data amid mixed Asian cues.
Industrial output expanded by 4.9 per cent in April this year, spurred by higher growth in manufacturing and mining sectors, as per official data released after market hours yesterday.
Retail inflation, however, inched up to 4.87 per cent in May on increase in food prices.
The 30-share barometer spurted by 184.89 points, or 0.51 per cent, to 35,877.41. The gauge had gained 248.85 points in the previous two sessions.
Sectoral indices such as healthcare, IT, consumer durables, teck, auto, metal, PSU and banking advanced.
In the Sensex kitty, Sun Pharma, Dr Reddy's, TCS, Axis Bank, Infosys, Yes Bank, Wipro, SBI, Bajaj Auto, Adani Ports, Tata Motors and Tata Steel climbed by up to 3.19 per cent.
The NSE Nifty index was trading higher by 46.05 points, or 0.42 per cent, at 10,888.90.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 1,327.45 crore, while foreign portfolio investors (FPIs) sold shares to the tune of Rs 1,168.88 crore yesterday, as per provisional data released by the stock exchanges.
In Asia, most markets were trading lower as investors turned their focus to the major central bank meetings this week.
Japan's Nikkei rose 0.34 per cent, while Hong Kong's Hang Seng was down 0.60 per cent in early deals today. China's Shanghai Composite also shed 0.75 per cent.
The US Dow Jones Industrial Average had ended a shade lower yesterday.