The Sensex and the Nifty rose over 1.3 per cent on Friday on positive global cues.
The 30-share BSE index Sensex was up 269.69 points (1.39 per cent) at 19,683.23 and the 50-share NSE index Nifty was up 82.4 points (1.41 per cent) at 5,945.70.
On the BSE, buying was seen in the stocks of Oil & Gas, FMCG, Metal and Banking sectors, while IT, TECk and Auto sector stocks lost investors support.
The rally was led by Oil & Gas (2 per cent), FMCG (1.93 per cent) and Metal (1.77 per cent). On the other hand, IT index (down 0.69 per cent) and TECk (0.36 per cent) lost investors support.
Asian markets ended in the green after US data indicated a steady improvement in the world's largest economy.
European stocks were heading for the biggest weekly gain since January, as Japan returned to growth in the fourth quarter and investors awaited US payrolls data.
“The US non-farm payrolls report will be the biggest event risk over the next 24-hours of trading and the data may increase the appeal of the dollar as job growth is expected to pick-up in February,” said a report from India Forex Advisors.
US stocks had ended the session higher on Thursday after report showed the number of Americans filing new jobless claims benefits fell unexpectedly last week, indicating a steady economic improvement.
US non-farm payrolls report due to be released on Friday is key to gauging the US Federal Reserve's policy stance as the Fed will keep its near-zero rate stance until the unemployment rate falls to 6.5 per cent, as long as inflation does not threaten to exceed 2.5 per cent.
The recent string of positive US economic data led the US stocks higher, pushing the Dow Jones industrial average to an intra-day record for a third consecutive session on Thursday.
Global sentiment was also boosted as China's February exports grew 21.8 per cent beating the forecast, while imports fell 15.2 per cent.
In the Asian trade, Japan’s Nikkei 225 rose 315.54 points or 2.64 per cent at 12,283.62, while Hong Kong’s Hang Seng jumped 338.86 points or 1.49 per cent at 23,110.30.