The 50-share Nifty of National Stock Exchange also regained 9,100 level by rising 32.80 points to 9,119.10 with 30 of index constituents making advances.
Recovery in the rupee against the dollar supported the positive sentiment in stock markets, brokers said.
After opening higher at 29,350.60 points, the Sensex rose further to 29,445.67 points in early trade, showing gains of 113.51 points or 0.39 per cent over last close.
The gauge had gained 164.48 points to settle at 29,332.16 points in the previous session.
Banking, infrastructure, metals, power, realty and FMCG stocks were trading in the positive zone.
Among major gainers, SBI, ICICI Bank and Axis Bank rose up to 2.2 per cent. ITC, Asian Paint and Wipro alsop advanced up to 1.5 per cent.
Bharti Airtel which took a beating in the last two sessions, was also trading higher by 1 per cent after reports that the teleocm giant has entered into a pact to buy Tikona Networks’ 4G spectrum.
Brokers said increased buying by investors and funds amid a firming trend in Asian bourses as investors await a delayed vote on US healthcare reform, which is seen as a proxy for the success of Donald Trump’s pro-growth agenda, influenced the sentiment.
Hong Kong’s Hang Seng was up 0.31 per cent and Shanghai Composite gained 0.03 per cent in early trade on Friday. Japan’s Nikkei rose 0.99 per cent.
The US Dow Jones Industrial Average, however, ended 0.02 per cent lower on Thursday.