The key benchmark indices advanced today on the back of gains in global markets. The benchmark Sensex was up 118 points at 15,349 levels and the Nifty was up 36 points at 4,559 levels.

Though the valuations are expensive at this stage, markets are likely to hold at current levels due to liquidity flows, said Ambareesh Baliga, VP, Karvy Stock Broking.

Realty, technology and metal stocks moved higher in early trade. The technology index on the BSE gained 2.3 per cent and the realty index rose 2.2 per cent. The BSE metal index was up 1.4 per cent.

Among the Sensex stocks, Infosys led the gainers. The stock advanced 2.5 per cent. Bharti Airtel, DLF and L&T were the other main gainers in the pack, up more than 1.9 per cent each.

However, ITC fell 2 per cent and was the biggest loser in the pack.

In US markets, the Dow shot up 188 points on Thursday to 9,069.29, its highest level since November. News that existing home sales rose in June for the third straight month and by a higher-than-expected amount led investors to extend a buying spree that has now lifted the Dow 923 points, or 11 percent, in just nine days.

The Standard & Poor's 500 index rose 22.22, or 2.3 percent, to 976.29.

The Nasdaq composite index rose 47.22, or 2.5 percent, to 1,973.60, its 12th straight advance.

Tracking cues from US markets, Asian markets were also trading higher today. Chinas Shanghai Composite and Japans Nikkei were up over 1 per cent each. Hong Kongs Hang Seng was also up 0.4 per cent.