Markets pared some of the morning gains with profit booking at higher levels in Reliance Industries, auto andFMCG majors.
At 10:30am, the Sensex was up 50 points at 19220 and the Nifty was up 14 points at 5839.
Meanwhile, the broader markets remianed strong with the midcap index up 0.8% and the smallcap index gained 0.6% in the morning deals outperforming the Sensex which was up 0.3%.
Among the sectoral indices, Auto and FMCG indices lost ground and were down over 0.5% each. On the other hand, Metal, Power, Capital Goods and Consumer Durables indices were up 0.7-1%.
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(Updated at 9:16am)
Markets started the day in the green with the Sensex up 55 points at 19,226 and the Nifty added 14 points to open at 5,839 extending yesterday's rally.
In international markets, US stocks finished higher on Thursday as investors bought on sporadic dips in a market roiled by conflicting comments from Washington about negotiations on an agreement to avoid the "fiscal cliff."
The Dow Jones industrial average rose 36.71 points, or 0.28%, to 13,021.82 at the close. The Standard & Poor's 500 Index gained 6.02 points, or 0.43%, to 1,415.95. The Nasdaq Composite Index advanced 20.25 points, or 0.68%, to close at 3,012.03.
Asian shares edged up on expectations a deal will eventually be reached to avoid a U.S. fiscal crisis, but investors wary about taking big positions before the year-end were likely to take profits on the rises and buy on dips.
Investors will also be looking at data from Asia on Friday and Saturday for signs that global growth deterioration may be slowing down.
Japan's industrial output unexpectedly rose 1.8% in October, up for the first time in four months, government data showed on Friday, suggesting the impact of the global slowdown and a diplomatic row with China may have run their course.
MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1% on Friday, after rising 1.1% to close at its highest level in nearly nine months on Thursday.
Japan's Nikkei stock average opened 0.5% higher, tracking higher global shares overnight and also drawing support from an ongoing weak yen.
Back home, in the broader markets, the midcap index opened in line with the Sensex, gaining 0.8% each while the smallcap index underperformed with a 0.6% gain in the opening trades.
Among the sectoral indices, Realty, Bankex and Capital Goods stepped up 1% each closely followed by Metal, Health Care, PSU and Power indices gaining 0.7-0.8%. The only laggards in the opening session were auto and FMCG indices, up 0.1% each.
The movers among the Sensex stocks were HDFC, Jindal Steel, BHEL, ICICI Bank, Cipla, Hero MotoCorp, Wipro, ONGC, Hindalco and SBI adding 1-2%.
Among the losers were Tata Motors, Bajaj Auto, Hindustan Unilever and Coal India down 0.6-1%. Index heavyweight, Reliance Industries slipped 0.1% to start at 796.
The market breadth was positive. 987 stocks advanced while 340 stocks declined on the BSE.
