The BSE benchmark Sensex was trading higher by over 183 points in late morning deals as Finance Minister Arun Jaitley tabled the Union Budget 2018-19 in Parliament.
Buying was led by capital goods, industrials, realty, banks, finance, auto and FMCG sectors.
While, metal, consumer durables and telecom counters witnessed profit-booking.
Investor sentiments were firm on expectation of growth oriented, market-friendly budget, brokers said.
The 30-share Sensex was trading 183.18 points, or 0.51 per cent, higher at 36,148.20 at 1110 hrs.
The broader Nifty was also trading at 11,082.82, up by 55.10 points, or 0.50 per cent.
Major gainers were L&T 3.13 per cent, M&M 3.10 per cent, Indusind Bank 2.04 per cent, Kotak Bank 1.55 per cent and TCS 1.50 per cent.
Losers included Dr Reddy 1.79 per cent, Tata Steel 1.42 per cent and Coal India 1.32 per cent.
Foreign portfolio investors (FPIs) sold shares worth Rs 136.63 crore on net basis while domestic institutional investors (DIIs) also sold equities to the tune of Rs 1,294.66 crore yesterday, provisional data showed.
Overseas, most Asian markets were trading higher, tracking gains seen on Wall Street following the Federal Reserve’s decision to keep rates unchanged.
US stocks closed slightly higher in the last session. The US Federal Reserve announced it was holding rates steady, a move that was widely expected.