The BSE Sensex advanced about 106 points in early session today, maintaining its positive form for the second day following robust growth data for the March quarter.
Investors creating new positions at the beginning of the June futures and options (F&O) series also lifted the key indices.
The 30-share index, which had rallied 416.27 points in the previous session, was trading higher by 105.57 points, or 0.30 per cent, at 35,427.95.
Sectoral indices, led by metal, auto, teck, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 per cent.
The NSE Nifty also went up by 25.40 points, or 0.24 per cent, to 10,761.55.
Official data released after market hours yesterday showed that India's January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy.
The rupee appreciating against the dollar also fuelled the uptrend, brokers said.
Auto stocks were in demand on expectations of encouraging sales data for the May month, to be released today.
Big gainers included ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, L&T, Tata Motors, Hero MotoCorp, Wipro, HDFC Ltd, TCS, Infosys, HUL and RIL, climbing up to 3.64 per cent.
However, other Asian markets were mixed on fresh trade war fears after the Trump administration's tariffs on imports from key allies.
Hong Kong's Hang Seng was up 0.26 per cent and Japan's Nikkei rose 0.24 per cent in their early deals while Shanghai Composite index fell 0.33 per cent.
The US Dow Jones Industrial Average ended 1.02 per cent lower in yesterday's trade.