The Sensex was trading higher by 143 points, while the Nifty rallied 32 points in early trade. Capital goods stocks like Bhel, Siemens, Crompton Greaves were all trading higher.
Tech stocks continued to exhibit weakness in trade with Infosys and Wipro losing ground. However, Tata Consultancy Services was trading with gains.
Among the Nifty winners in early trade were Jindal Steel, DLF, Sesa Sterlite and NTPC. Shares in UCO Bank were up almost 2 per cent after the company reported a better set of results.
Other PSU banking stocks also saw some buying interest with Syndicate Bank, IDBI bank and Canara Bank among the winners.
Jewellery stocks which had rallied sharply on Thursday after the RBI cut import duty norms were trading marginally lower on profit booking.
Among the smaller cap stocks Rane Brakes surged a huge 16 per cent, after the company reported a sharp increase in its net profits.
Nifty stocks that lost ground in trade today were Hindalco Industries, Kotak Mahindra, Ultratech Cement and HDFC Bank. State Bank of India was trading marginally higher ahead of its results today.
Mid cap stocks were having a good session in trade with notable winners being NHPC, Hindustan Zinc, Unitech and Steel Authority of India.
Meanwhile, markets across Asia were trading with gains with the Japanese Nikkei, Singapore's Straits Times and the Taiwan Weighted all up in trade.