A strong rupee against major rivals and continuous buying by foreign funds added to the momentum, traders said.
At 10.30 am, The 30-share BSE index was trading 1,010.89 points or 1.67 per cent higher at 61,624.59 in initial deals. Similarly, the broader NSE Nifty gained 280.65 points or 1.57 per cent to 18,308.85.
IT stocks surge over 3%
All the Sensex constituents were trading in the green. Wipro was the top gainer in the pack, rising 3.61 per cent, followed by Tech Mahindra, Infosys, HCL Tech, IndusInd Bank, Tata Steel and TCS.
In the previous session on Thursday, the 30-share BSE benchmark ended 419.85 points or 0.69 per cent lower at 60,613.70. The broader NSE Nifty too fell 128.80 points or 0.71 per cent to end at 18,028.20.
US inflation ease
Financial markets rallied after the US consumer price index eased to 7.4 per cent in October from 8.2 per cent in September. Markets were on tenterhooks after the US Federal Reserve indicated more interest rate tightening to fight inflation. The current US inflation data points to an early end of the interest rate hike cycle.
In Asian markets, bourses in Tokyo, Shanghai, Seoul and Hong Kong were trading with significant gains.
Equities on Wall Street ended sharply higher in the overnight session on Thursday.
The rupee appreciated 64 paise to 80.76 against the US dollar in early trade on Friday.
Foreign institutional investors (FIIs) remained net buyers in the Indian capital market on Thursday, as they bought shares worth ₹36.06 crore, as per exchange data.
International oil benchmark Brent crude was trading 0.36 per cent higher at $94.01 per barrel.