Gains across sectors - led by financial, metal and energy shares - supported the markets
Domestic stock markets started Friday's session on a positive note, rising for a sixth straight day, after the US central bank shifted its policy framework to focus more on economic growth than inflation. The S&P BSE Sensex index rose 209.64 points - or 0.54 per cent - to 39,323.11 at the strongest level in early deals, after a gap-up opening at 39,261.54 (0.38 per cent). The broader NSE Nifty 50 benchmark climbed to as high as 11,617.35, up 58.1 points - or 0.50 per cent - from its previous close, having begun the day up 0.38 per cent at 11,602.95.
At 9:22 am, the Sensex traded 198.13 points - or 0.51 per cent - higher at 39,311.60, while the Nifty was up 56.2 points - or 0.49 per cent - at 11,615.45. Gains across sectors - led by financial, metal and energy shares - supported the markets.
Analysts awaited official data on the country's GDP or gross domestic product in the April-June period due on Monday, for more clarity on the damage caused to the economy by the coronavirus pandemic and the resultant restrictions.
(Also Read: Sensex, Nifty To Face Correction After 50% Rally Despite Covid-19, Says Poll)
Equities in other Asian markets recovered early sluggishness to move higher but caution prevailed. MSCI's broadest index of Asia Pacific shares outside Japan was last seen trading 0.34 per cent higher, while Japan's Nikkei 225 benchmark was up 0.61 per cent.
While China's Shanghai Composite index traded 0.51 per cent higher, Hong Kong's Hang Seng and South Korea's KOSPI gauges were up 0.80 per cent and 1.22 per cent respectively.
On Thursday, Federal Reserve Chairman Jerome Powell laid out a policy that aims for 2 per cent inflation on average so that too low a pace would be followed by an effort to lift inflation "moderately above 2 per cent for some time".
The change suggests the US central bank's key overnight interest rate, already near zero, will stay there for potentially years to come as policymakers woo higher inflation.
(Also Read: In A Big Shift, US Central Bank Rewrites Its Approach To Inflation, Jobs Market)
Though his comments were widely expected, some traders were disappointed that the US central bank did not reveal more details about how the new framework will work or provide any clues to what it will do at its next policy meeting.
On Thursday, the Sensex had ended with a gain of 39.55 points (0.10 per cent) at 39,113.47 and the Nifty settled at 11,559.25, up 9.65 points (0.08 per cent) from its previous close.
