Mumbai: Indian indices held on to the gains after the RBI Governor Shaktikanta Das announced measures to ease liquidity in the economy.
In a major move, the central bank cut its reverse repo rate by 25 bps to 3.75 percent.
At 12:15 pm, the Sensex traded 447 points to 31,056 and the Nifty50 rose 127 points to 9,119.
Top gainers on NSE Nifty and BSE Sensex included Axis Bank, ICICI Bank, HDFC, IndusInd Bank and Bajaj Finance each rising over 5%
Equity benchmark Sensex rallied over 1,100 points in opening trade on Friday tracking strong gains in index heavyweights HDFC twins, Reliance Industries, ICICI Bank and TCS amid positive cues from global markets.
After hitting a high of 31,711.70, the 30-share index was trading 1,036.74 points or 3.39 per cent higher at 31,639.35.
Similarly, the NSE Nifty was quoting 291 points, or 3.24 per cent, up at 9,283.80.
Foreign portfolio investors (FPIs) were net sellers in the capital market on Thursday, as they offloaded equity shares worth Rs 2,920.36 crore, according to provisional exchange data.
According to traders, market sentiment turned positive led by rally in global equities.
Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with significant gains in early deals.
Stock exchanges on Wall Street ended significantly on a strong note overnight trade.
On the domestic front, more measures to boost the domestic economy by the central bank chief also lifted benchmark indices.