Top gainers in the Sensex pack included IndusInd Bank, Hero Motocorp Tech Mahindra, Tata Steel, ITC and Infosys.
Inching closer to its all-time intraday high, Sensex was trading 0.55 per cent higher during early trade.
The broader NSE Nifty advanced 35.85 points, or 0.30 per cent, to 11,822.70.
Tata Motors was the top gainer in the Sensex pack, rallying over 13 per cent, after the company posted strong quarterly results.
RIL rose over 1 per cent Tata Steel, M&M, Vedanta, TCS and Maruti too advanced up to 3 per cent.
The 30-share Sensex swung over 523 points before settling 37.67 points, or 0.10 per cent, higher at 39,058.06.
HCL Tech was the top gainer in the Sensex pack, rising 2.93 per cent, ahead of its quarterly results.
Domestic traders were also enthused after Finance Minister Nirmala Sitharaman hinted at more stimulus measures.
Amid sustained foreign fund inflows, easing global crude prices also helped buying sentiment, traders said.
The bank declined to quantify the number of employees who will be hit.