The Bombay Stock Exchange benchmark Sensex jumped by 217 points in opening trade on Friday on buying by funds and retail investors, driven by firming global trends.
The 30-share index rose by 217.03 points, or 1.29 per cent, to 17,006.77 points. The BSE barometer had lost 536.27 points, or 3 per cent, in the previous three sessions.
The wide-based National Stock Exchange index Nifty moved up by 66.35 points, or 1.33 per cent, to 5,054.95 points.
Brokers said sentiments turned better following overnight gains on the US market on the back of upbeat corporate earnings and firming trends on the other Asian bourses, which rose up to 1.50 per cent in morning trade.
Among major gainers, Sterlite Industries rose by 2.27 per cent to Rs 834.05, Tata Steel by 1.77 per cent to Rs 552.60 and SAIL by 1.67 per cent to Rs 185.75.
Reliance Industries moved up by 0.34 per cent to Rs 2,140.70, Infosys Technologies by 0.57 per cent to Rs 2,224, Wipro by 1.40 per cent to Rs 584.95, DLF Ltd by 3.13 per cent to Rs 462.80.
Hong Kong's Hang Seng Index was up 1.03 per cent higher, while the Tokyo Stock Exchange's Nikkei-225 rose 0.62 per cent. Chinese shares rose 1.06 per cent in early trade.
The Dow Jones Industrial Average jumped 1.33 per cent to close at 10,081.31 points. The Nasdaq composite rose 0.68 per cent to 2,165.29 points.