The S&P BSE Sensex rose as much as 250.06 points in early trade to 37,318.99, and the broader NSE Nifty benchmark moved to 11,024.85, up 76.55 points from the previous close. Strength in financial and metal sectors pushed the markets higher, however weakness in information technology shares limited the upside.
At 10:01 am, the Sensex traded 184.42 points - or 0.50 per cent - higher at 37,253.35, while the Nifty was up 58.25 points - or 0.53 per cent - at 11,006.55.
Top percentage gainers on the 50-scrip index at the time were Hindalco, GAIL, Vedanta, Tata Steel, JSW Steel and Bajaj Finance, trading between 1.64 per cent and 3.59 per cent higher.
HDFC Bank, ITC, HDFC and Reliance Industries were the top contributors to the gains in Sensex.
Analysts awaited macroeconomic data for cues. The government will release GDP or gross domestic product data for the quarter ended June 30 after market hours.
According to a poll by news agency Reuters, the economy was expected to have grown 5.7 per cent in the June quarter - its slowest pace in more than five years.
Meanwhile, equities in other Asian markets rose on Friday as China struck a hopeful tone on trade with the US but continued fears about a global growth slowdown capped sharp rallies.
MSCI's broadest index of Asia-Pacific shares outside Japan climbed 0.6 per cent but stayed near a recent seven-and-a-half-month trough. For the week, it is still set for a small weekly loss.
Japan's Nikkei jumped 1 per cent while South Korea's KOSPI index gained 1.5 per cent and Australian shares rose 0.9 per cent.
Investors were focussed on a string of economic releases due over the weekend including China's official manufacturing survey which would provide a good gauge of the real impact from the US-China trade war.
The Sensex and Nifty had shed 572.34 points - or 1.52 per cent - and 157.05 points - or 1.41 per cent - respectively in past two sessions.