The key benchmark index advanced in early trades tracking gains in global markets after positive economic news from US lifted investor confidence. The Sensex was up 175 points at 16,239 levels and the Nifty rose 1.1 per cent to 4,819.
“The markets are just witnessing a pullback and they are still in a medium term downtrend. Selloff may be seen at 4,850-4,860 levels,” said Shrikant Chouhan, technical analyst at Kotak Securities.
Realty, metal and power stocks led the gains on the bourses today. The realty index on the BSE rose 2.9 per cent and the BSE metal index advanced 2.6 per cent. The power index also surged 1.4 per cent.
Among the Sensex stocks, Tata Steel led the gainers. The stock rose 3.5 per cent in early trades. Hindalco, DLF and JP Associates were the other major gainers in the pack. However, HUL fell over a per cent today.
In US, a bright forecast from Cisco Systems and upbeat economic news sent stocks soaring on Thursday and propelled the Dow Jones industrials back above 10,000.
The Dow rose 203.82, or 2.1 percent, to 10,005.96, its first close above 10,000 since Oct. 22, and 86 points below its high of the year.
The broader Standard & Poor's 500 index rose 20.13, or 1.9 percent, to 1,066.63, its fourth straight gain.
The Nasdaq rose 49.80, or 2.4 percent, to 2,105.32, its biggest gain since a 2.5 percent spike on July 23.
Asian stocks also advanced today following gains in US markets. Hong Kong’s Hang Seng rose 1.6 per cent and Japan’s Nikkei was up 1 per cent. South Korea’s Kospi also gained 1.3 per cent. (With AP inputs)