The S&P BSE Sensex rebounded 233 points on Friday, paring all the losses witnessed in the previous session amid positive global cues.
The Sensex closed at 27,079 points, up 0.87%, while the 50-share Nifty rose by 60 points, or 0.74%, to end at 8,189.
"After taking a breather in the previous trading session, the Indian equity market resumed its north-bound journey. Markets indeed were under pressure after opening with smart gains; however, sudden bout of buying in the IT, Telecom, Metals, Auto and Healthcare stocks saw the Nifty close near the 8,200 mark," said a note from IIFL.
Earlier on Thursday, the US Federal Reserve September meeting minutes showed that the central bank was not in a hurry to raise interest rates, lending support to global equity markets, including Indian markets.
Most of the Asian markets ended sharply higher, with China's Shanghai Composite index gaining 1.3% and Japan's Nikkei closing 1.6% higher. Major European markets soared over 1% after opening.
Among the BSE sectoral indices, IT was the top gainer ending 1.51% higher, followed by the Metal index, which rose nearly 1%.
Infosys shares rose 3.1% to end at Rs 1,167 ahead of the company's second quarter results announcement on 12 October.
"Infosys is expected to deliver healthy constant currency dollar revenue growth of 3.5‐4% qoq. It will likely carry the growth momentum of Q1 FY16 (delivered 5%+ qoq volume growth) underpinned by execution on deal wins and incremental progress on client mining," said Amar Ambani, Head of Research, IIFL.
Mining major Vedanta shares were up about 12% after the company announced that it is planning to foray into "solar segment in India by bidding for some 500 MW of government projects".
Meanwhile, investors also await key economic data release next week, after the Reserve Bank of India (RBI) announced a 50bps cut in repo rate on 29 September. Both the September inflation and the August industrial production data will be released on 12 October.
"Movement of index in near term will depend on further reform initiatives to be taken by the government, trend in global markets, investment by foreign institutional investors (FIIs), the movement of rupee against the dollar, CPI and IIP data, and also WPI data," said Vivek Gupta, CMT – Director Research, CapitalVia Global Research Limited.
"Technically, Nifty future has bounced from the lowest level and retraced up to 61.80% which is at 8240 levels according to Fibonacci retracements. So, it is likely to face strong resistance around 8250 - 8300 levels. On the upside, if it manages to sustain above its important resistance level of 8300 on closing basis, its next resistance is at 8500 levels and on the downside immediate support level is at 8100," Gupta said.
On the commodities front, gold prices were down Rs 50 to Rs 26,600 per 10 gm, while silver prices gained Rs 100 to close at Rs 36,800 per kg.