After two sessions of losses, the benchmark BSE Sensex recovered by over 71 points to regain the 26,000-mark in early trade on Friday on emergence of buying by funds and retail investors amid a firming trend in other Asian markets.
Besides, encouraging earnings reported by Hero MotoCorp also influenced market sentiments.
The 30-share index, which had lost 384.73 points in the previous two sessions, rebounded by 71.37 points, or 0.27%, to 26,070.71, with FMCG, power, capital goods and healthcare stocks, leading the recovery.
Also, the National Stock Exchange index Nifty edged higher by 13.40 points, or 0.17%, to 7,761.60.
Brokers said besides better corporate earnings, a firming trend in the Asian region after the American and European shares stabilised in response to upbeat US data, influenced sentiments in India.
Stocks of the country's largest two-wheeler maker, Hero MotoCorp, rose 1.17% to Rs 2,824.45 after the company reported 58.62% increase in net profit at Rs 763 crore for the second quarter ended September 30.
Among other Asian markets, Hong Kong's Hang Seng was up by 0.21% while Japan's Nikkei rose 0.39% in early trade on Friday.
The US Dow Jones Industrial Average shed 0.15% in Thursday's trade.