Lower than expected inflation in the US, pushed markets in Asia higher, after Wall Street itself rallied, on hopes that interest rates would be gradually raised.

Overseas, Asian stocks were trading higher, mirroring positive closing of Wall Street in overnight trade, as investor cheered decline in US inflation data, which shrugged-off fears that Federal Reserve would hike interest rate aggressively.

The Sensex was trading with gains of 134points at 35380, points, while the Nifty was up 43 points in trade.

Shares of PC Jeweller was in focus after the company said that its board has approved the buy-back of up to 1.2 crore fully paid-up equity shares of Rs 10 each. The stock jumped 11 per cent and was last seen higher at Rs 232.

Union Bank reacted to a poor set of numbers and the stock was down 4 per cent at Rs 84.

Shares in Allahabad Bank and Canara Bank, were both trading lower ahead of their results to be declared later today.

On Thursday, the Indian equities ended lower, tracking mixed cues from global peers, as investors remained wary ahead of Assembly elections in Karnataka on Saturday while sustained fund outflows by foreign institutional investors also dented sentiment at Dalal-Street. The broader market also underperformed, with MidCap and SmlCap indices sliding as much as 1.52 per cent and 1.36 per cent, respectively.

On May 10, FIIs stood as net seller in both equity and debt markets. Gross equity purchased stood at Rs. 4048.75 Crore and gross debt purchased stood at Rs. 1648.41 Crore, while the gross equity sold stood at Rs. 4738.63 Crore and gross debt sold stood at Rs. 2422.86 Crore. Therefore, the net investment of equity and debt reported were Rs. -689.88 Crore and Rs. -774.45.

Investors will keep an eye on the Karnataka Legislative Assembly elections 2018 which is scheduled to be held across the state on May 12 and results will be declared on May 15. A victory for the BJP in the crucial state will boost market sentiment.

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