The Sensex and the Nifty ended the session higher by nearly 0.4 per cent on sustained capital inflows and positive economic data amid firm European cues.
The 30-share BSE index Sensex gained 106.02 points to 28,046.66 and the 50-share NSE index Nifty ended at 8,389.90, up 32.05 points.
Among BSE sectoral indices, metal index was the star-performer and was up 2.53 per cent, followed by realty 2.35 per cent, PSU 1.61 per cent and oil & gas 1.06 per cent. On the other hand, healthcare index fell the most by 1.22 per cent and FMCG 0.12 per cent.
Hindalco, Coal India, GAIL, SBIN and SSLT were the top five Sensex gainers, while the major losers were Cipla, Sun Pharma, Dr Reddy's, HUL and Tata Motors.
Brokers said that the domestic sentiment remained firm on sustained foreign fund inflows and positive economic data as retail inflation eased to 5.52 per cent in October and industrial production grew at 2.5 per cent in September. Besides, falling global crude oil prices influenced the trading sentiment.
European stocks were flat on Friday after gross domestic product numbers showed both France and Germany grew marginally in the third quarter, while the dollar rose further against the yen on expectations of a snap election in Japan.
The European data confirmed that the outlook for much of the world economy still looks much shakier than for the United States, although France beat expectations. Asian stocks fell following the latest signs that growth in China is slowing.
European shares were broadly flat on opening, with London down 0.1 per cent and German and French markets a quarter of a point higher. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3 per cent, countered by a half-point rise in Tokyo.