Gains were led by Axis Bank, which reported a 2.06 percent rise, and Infosys, with a 1.72 percent rise.
Shares of Reliance Industries, ONGC, Coal India and Tata Steel together added nearly 1.3 percent in morning trade.
Markets also spurred on the backdrop of budget expectations, with this year's Union Budget scheduled to be presented on February 1, apart from positivity among investors on account of trade talks being held at Davos.
On a related note, Prime Minister Modi will be delivering the keynote address at the plenary session of the World Economic Forum at Davos later in the day. (ANI)