The key benchmark indices were trading higher in the early deals today. The Sensex rose 81 points to 16,298 and the Nifty gained 25 points to trade at 4,844.
Some buying interest was seen in IT, realty and pharma stocks. The BSE IT index surged 0.9 per cent and the realty index rose 0.8 per cent. The healthcare index on the BSE was up 0.6 per cent.
In the Sensex pack, M&M was the biggest gainer. The stock rose 2.4 per cent. Hindalco, DLF and HDFC were up over 1.2 per cent each.
Sterlite Ind, however, was trading 2.6 per cent lower. Sterlite Industries has raised the bid for Asarco from $2.29 billion to $2.56 billion.
US markets gained on Thursday after a drop in weekly unemployment claims and an upbeat forecast from Procter & Gamble raised hopes for the economy.
The Dow Jones industrial average rose 80 points Thursday to its highest close since October.
The broader S&P 500 index rose 10.77, or 1 percent, to 1,044.14, its first five-day climb since November.
The Nasdaq composite index rose 23.63, or 1.2 percent, to 2,084.02.
Asian markets were trading mostly higher today. Chinas Shanghai Composite rose 1.2 per cent and Hong Kong's Hang Seng was up 0.8 per cent. Japans Nikkei, however, was trading 0.7 per cent lower.