The benchmark Sensex was trading higher by nearly 200 points and the NSE index Nifty up by over 8,800 on sustained buying by investors, along with foreign capital inflows amid sizeable purchases by domestic institutional investors.
However, both indexes trimmed their early gains due to a weak trend in other Asian markets.
At 10.20 a.m., the 30-share BSE index Sensex was up 192.47 points or 0.68 per cent at 28,493.74 and the 50-share NSE index Nifty was up 42.6 points or 0.49 per cent at 8,820.60.
Among BSE sectoral indices, banking index gained the most by 1.56 per cent, followed by healthcare 1.26 per cent, oil & gas 0.44 per cent and realty 0.18 per cent. On the other hand, IT index was down 1.00 per cent, followed by TECk 0.91 per cent, metal 0.75 per cent and auto 0.2 per cent.
Top five Sensex gainers were HDFC Bank (+6.6%), Sun Pharma (+2.11%), HDFC (+1.48%), Lupin (+1.1%) and Cipla (+1.02%), while the major losers were Infosys (-1.42%), Coal India (-1.23%), Hero MotoCorp (-1.23%), TCS (-1.14%) and Wipro (-0.97%).
Early trade
The 30-share barometer zoomed 424.99 points or 1.50 per cent to 28,726.26. The gauge had gained 145.71 points in the previous session.
Also, the NSE Nifty recaptured the key 8800-level by surging 91.60 points or 1.04 per cent to 8,869.60.
HDFC Bank skyrocketed 7.29 per cent to Rs 1,424.05 after RBI had yesterday lifted the restrictions on foreign investors for purchase of shares in the company.
FIIs, NRIs and PIOs (persons of Indian origin) can invest in primary and secondary capital markets in India through portfolio investment scheme (PIS).
RBI monitors the ceilings on FII, NRI, PIO investments in Indian companies on a daily basis and has fixed the cut-off 2 percentage points below the actual ceiling.
Other big-time movers that supported the rally were HDFC Ltd, Axis Bank, Lupin, PowerGrid, Adani Ports, Tata Motors, ONGC, Cipla, GAIL, Bharti Airtel and L&T, advancing by up to 1.64 per cent.
Asian shares
Asian stock markets took a breather on Friday from their recent surge as investors booked profits, while the dollar inched up after Thursday's slide and optimism over possible renewed supply cuts by OPEC lifted oil prices.
MSCI's broadest index of Asia-Pacific shares outside Japan pulled back 0.1 per cent, on track to end the week up 1.3 per cent, its fourth straight weekly gain.
US stocks
The Dow Jones Industrial Average scored its sixth straight record high on Thursday, but just barely, while the S&P 500 edged lower due to declining energy stocks.
The Dow Jones Industrial Average ended up 0.04 per cent to close at 20,619.77, its sixth straight record-high close. The S&P 500 had lost 0.09 per cent to 2,347.22 and the Nasdaq Composite dropped 0.08 per cent to 5,814.90.