New Delhi: Benchmark equity indices Sensex and Nifty opened higher on Friday, extending the previous session's sharp rally, as buying in IT stocks and strong quarterly earnings from Tata Group's retail arm Trent supported investor sentiment.
The 30-share BSE Sensex gained 138.77 points to reach 74,289.81 in early trade, while the broader NSE Nifty rose 38.95 points to 22,967.10.
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Trent emerged as the biggest gainer among Sensex constituents, surging 6 percent after reporting a 25 percent year-on-year increase in consolidated net profit to Rs 468 crore for the September quarter.
The Tata Group company's earnings were supported by revenue growth and improved operating leverage despite inflationary pressures.
IT stocks also attracted buying interest, with Infosys, Tata Consultancy Services, HCL Technologies and Tech Mahindra trading higher. InterGlobe Aviation and Sun Pharmaceutical Industries were among the other major gainers.
However, Bharat Electronics Ltd, State Bank of India, UltraTech Cement and Tata Steel traded in negative territory, limiting the overall gains.
Domestic equities advanced despite subdued global market trends and elevated crude oil prices.
Brent crude, the global oil benchmark, climbed 1.19 percent to USD 116.30 per barrel, raising concerns over inflation and India's import bill.
Asian markets presented a mixed picture. South Korea's Kospi, Japan's Nikkei 225 and China's Shanghai Composite traded lower, while Hong Kong's Hang Seng registered gains.
US stock markets had closed lower on Thursday.
Foreign institutional investors (FIIs) remained net sellers, offloading Indian equities worth Rs 943.60 crore on Thursday, according to exchange data.
Friday's positive opening followed a strong recovery in domestic equities during the previous session.
On Thursday, the Sensex surged 905.01 points, or 1.24 percent, to settle at 74,151.04. The Nifty gained 237.90 points, or 1.05 percent, to close at 22,936.75.
While earnings-driven buying and renewed interest in technology stocks provided support, sustained foreign fund outflows, elevated crude prices and weakness in global equities remained key risks for the market.
Market participants will closely watch whether the recovery broadens beyond select heavyweight stocks and translates into sustained buying across sectors.
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