The Sensex and the Nifty ended the session higher by nearly 0.4 per cent led by banking, capital goods, consumer durables and power sector stocks amid firm global cues.
The 30-share BSE index Sensex gained 109.19 points at 26,108.53 and the 50-share NSE index Nifty moved up by 31.5 points at 7,779.70.
Among BSE sectoral indices, banking, capital goods, consumer durables and power indices were the star-performers and were up 2.46 per cent, 1.86 per cent, 1.81 per cent and 1.34 per cent, respectively. Only IT and TECk indices were down 4.00 per cent and 2.67 per cent, respectively.
BHEL, Hero MotoCorp, HDFC Bank, M&M and ICICI Bank were the top five Sensex gainers, while the top five losers were TCS, SSLT, Hindalco, Tata Motors and Wipro.
Encouraging corporate earnings and exit polls showing the BJP gaining majority in Maharashtra and Haryana Assembly polls triggered fresh spell of buying by participants, brokers said.
“Auto and banking stocks helped indices rise...rebound in global markets, further strengthened market sentiment,” said Manoj Choraria, a Delhi-based stock broker.
Auto stocks led by Hero MotoCorp turned buyers' fancy after the company reported 58.62 per cent increase in net profit at Rs 763 crore for the second quarter ended September 30,2014.
Hero MotoCorp shares gained the most among Sensex counters by surging 3.52 per cent. M&M and Maruti Suzuki also edged higher.
Investors, after remaining sellers in the past few sessions, were seen accumulating stocks at an attractive levels.
European stocks climbed the most in six weeks, snapping an eight-day losing streak, as an ailing euro zone economy increased pressure on policy makers to provide more stimulus measures.
Stoxx 50 gained 41.71 points at 2,916.36, FTSE 100 was up 48.77 at 6,244.68 and CAC 40 rose 56.65 points at 3,975.27.
Asian stocks were on the defensive on Friday, unable to hold early gains as solid US data gave only a temporary boost and failed to dispel the underlying worries about slowing world economic growth.
The Nikkei share average led the losses, falling 1.3 per cent on the day and 5.0 per cent on the week, its biggest weekly fall in six months.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, on course to log its sixth straight week of losses with a fall of 0.9 per cent so far this week.