At 09.24 hrs IST, the Sensex is up 101.44 points or 0.52 percent at 19514.98, and the Nifty up 29.50 points or 0.50 percent at 5892.80.
World stock prices rose to an eight-month high on Thursday and oil prices climbed as stronger-than-expected Chinese exports raised hopes of a more robust recovery for the global economy this year.
Chinese exports slowed sharply in November in a reminder of the external headwinds that are blowing against the country's economic recovery.
Leading global steel producers are bracing themselves for a surge in Chinese exports, as a marked slowdown in Asia's largest economy pushes its struggling domestic steelmakers to send more excess capacity abroad.
China's slowing demand for steel is driving Chinese exports of the metal to the highest level in more than three years.