The 30-share index was trading 309.16 points or 0.82 per cent higher at 38,156.81 at 0945 hours; and the broader Nifty also surged 81.15 points or 0.72 per cent to 11,352.45.

In the previous session, the 30-share index tumbled 135.09 points or 0.36 per cent to close at an over two-month low of 37,847.65. Similarly, the Nifty dropped 59.75 points or 0.53 per cent to 11,271.30.

In early trade, IndusInd Bank, HDFC Bank, Sun Pharma, Vedanta, HDFC, Axis Bank, Infosys and Maruti led the gains on Sensex, rising up to 2.35 per cent.

On the other hand, Tata Motors, Kotak Bank, Yes Bank, Asian Paints, ONGC and M&M fell up to 2.28 per cent.

According to traders, besides tracking firm global cues, benchmark indices rallied on gains in index heavyweight HDFC and HDFC Bank stocks.

Investors are also upbeat ahead of the expiry of July futures and derivatives contracts, they said.

On a net basis, foreign institutional investors sold equities worth Rs 1,393.71 crore, while domestic institutional investors purchased shares to the tune of Rs 2,140.26 crore, provisional data available with stock exchanges showed on Wednesday.

Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the green in their respective early sessions.

Equities on Wall Street too ended on a positive note on Wednesday.

Meanwhile, the Indian rupee appreciated marginally to 68.96 against the US dollar (intra-day).

The global oil benchmark Brent crude futures were trading 0.17 per cent higher at 63.29 per barrel