After a six-day losing streak, Indian market opened higher and also maintained gains entering the afternoon session. It has recovered most of the losses made in Thursday's session.
BSE's Sensex rose nearly 800 points or over 2 percent to 37,352.57 points while NSE's Nifty 50 soared past the 11,000-mark after a 2 percent rally.
1. Recovery in global markets
Pan-European Stoxx 600 inched 0.1 percent in early trade after strong gains were seen in Australia's "Big Four" banks, mixed Asia Pacific trading and an overnight rally in American tech stocks. In the US, Dow futures are pointing to a positive open Friday for the American markets.
2. Bluechips gain
Among biggest movers of the benchmark indices were HCL Technologies, Tata Consultancy Services, Bharti Airtel, Adani Ports and Bajaj Finance. Bharti Airtel was the top Nifty gainer with a 6 percent rise. 47 out of the 50 stocks on Nifty 50 were trading with gains.
Among sectors, Nifty IT was the top gainer. Auto, FMCG, Media, Metal and Pharma sectoral indices of NSE gained over 2 percent each.
3. Buyer's market
After a significant correction in stock prices this week, analysts believe that the market presented itself to investors an opportunity to accumulate quality stocks.
4. Additional stimulus ahead?
A Moneycontrol report citing unnamed government sources said that the Narendra Modi government is only weeks away from announcing another round of stimulus measures to push demand and create employment. The report said that these measures would be announced before the start of the upcoming festive season.
Internationally, investors are hopeful after news reports said that the Democrats in the US House of Representatives were working on a $2.2 trillion coronavirus relief package that will be presented for a vote in the next week.