Induction stoves work on the principle of induction. The stove contains a coil which is excited by a high frequency AC supply. Above this coil is a plate. The vessel to be heated is placed on this plate. The alternating magnetic field set up by the coil induces currents in the vessel surface. This current generates heat as it circulates in the vessel.
All metal induction stoves are in the process of development which can heat vessels of all metals. Non-magnetic metals can also be heated, though, at a lesser efficiency.