Reversing a two-session slide, the benchmark BSE Sensex rose over 200 points and the Nifty reclaimed the 10,600-mark in early trade on Friday on fresh buying by investors as the July derivatives contracts started on a strong note amid recovery in the rupee.
The 30-share Sensex bounced back by 200.13 points, or 0.57 per cent, at 35,237.77.
All the sectoral indices, led by metal, oil and gas and consumer durables, were in the positive zone, rising by up to 2.03 per cent.
The NSE Nifty went up by 63.15 points, or 0.60 per cent, to 10,652.25.
Brokers said building up of bets following the beginning of the July futures and options (F&O) series coupled with a firming trend at other Asian markets and overnight gains at Wall Street influenced trading sentiment here.
Besides, the rupee recovering from its record low and easing crude oil prices supported the recovery, they added.
Meanwhile, domestic institutional investors (DIIs) bought shares worth a net Rs 442.64 crore, while foreign portfolio investors (FPIs) sold shares worth Rs 951.51 crore on Thursday, as per provisional data.
In Asia, Hong Kong's Hang Seng was up 1.08 per cent, Japan's Nikkei rose 0.03 per cent while Shanghai Composite Index advanced 1.20 per cent in early trade on Friday.
The US Dow Jones Industrial Average ended 0.41 per cent higher on Thursday.