The gains came ahead of the briefing by the Reserve Bank of India's (RBI) Governor Shaktikanta Das at 10 a.m. Investor sentiments were boosted on hopes of further support for liquidity easing in the economy.
Rise in the Asian indices also supported the domestic markets, analysts said.
At 9.32 a.m., Sensex was trading at 31,648.99, higher by 1,046.38 points or 3.42 per cent from the previous close 30,602.61.
It had opened at 31,656.68, and has touched an intra-day high of 31,711.70 and a low of 31,512.11.
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The Nifty50 on the National Stock Exchange (NSE) was trading at 9,283.80, higher by 291 points or 3.24 per cent from previous close.
