The S&P BSE Sensex rose as much as 117.99 points to 38,941.10 in early trade and the NSE Nifty index moved to 11,608.90, up 26 points from the previous close.
However, the markets gave up most of day's gains in the first few minutes of trade, as Weakness in sectors such as banking and energy offset advances in pharma and energy stocks.
Analysts said caution prevailed ahead of key macroeconomic data and earnings announcements from large caps such as Infosys and IndusInd Bank.
At 9:36 am, the Sensex traded 16.67 points - or 0.04 per cent - higher at 38,839.78, while the Nifty was down 0.50 point at 11,582.40.
Top percentage gainers on the 50-scrip index were Sun Pharma, UPL, NTPC, Reliance Industries and Cipla, trading between 0.70 per cent and 1.82 per cent higher. On the other hand, Wipro, JSW Steel, Bharti Airtel, Hero MotoCorp and Zee Entertainment - trading between 1.16 per cent and 2.15 per cent lower - were the top laggards.
While Reliance Industries, HDFC and Sun Pharma contributed the most to the advances in Sensex, HDFC Bank, Larsen & Toubro and ICICI Bank were the top drags.
IT major Infosys and private sector lender IndusInd Bank will be reporting their earnings for the quarter ended June 30 later in the day.
The government is due to release data on consumer inflation (Consumer Price Index) and industrial production (Index of Industrial Production) at 5:30 pm.
Equities in other Asian markets pulled back on Friday amid renewed concerns over the US-China trade war. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.05 per cent in early deals, with Australian shares dipping 0.16 per cent and Japan's Nikkei stock index trimming 0.11 per cent.
US President Donald Trump said on Thursday that China was not living up to promises it made on buying agricultural products from American farmers.
Federal Reserve Chairman Jerome Powell indicated on the same day that a rate cut is likely at the US central bank's next meeting as businesses slow investment due to trade disputes and a global growth slowdown.
China will release its trade data for the month of June during the day. Analysts expect exports to have fallen as weakening global demand and a sharp hike in US tariffs took a heavier toll on the world's largest trading nation.
Overnight on Wall Street, the S&P 500 gained 0.23 per cent to end at a record closing high of 2,999.91 points and the Dow Jones Industrial Average per cent hit a record high close of 27,088.08 points, rising 0.85 per cent on the day. The Nasdaq Composite fell 0.08 per cent.
The Sensex and Nifty indexes had ended 0.69 per cent and 0.73 per cent higher respectively on Thursday, with the 50-scrip benchmark index breaking a three-day losing spree.