The 30-share index was trading 136.83 points, or 0.34 per cent, higher at 40,265.88, and the broader NSE Nifty advanced 33.90 points, or 0.29 per cent, to 11,911.35.
Top gainers in the Sensex pack included IndusInd Bank, Hero Motocorp Tech Mahindra, Tata Steel, ITC and Infosys, rising up to 2.68 per cent.
On the other hand, Bharti Airtel, Tata Motors, Yes Bank, TCS, RIL and SBI fell up to 1.98 per cent.
In the previous session, the 30-share Sensex settled at 40,129.05, up by 77.18 points, or 0.19 per cent. The broader NSE Nifty too advanced 33.35 points, or 0.28 per cent, to close at 11,877.45.
Foreign institutional investors purchased a Rs 1,870.87 crore in the capital market, on Thursday, while domestic institutional investors sold shares worth Rs 650.73 crore, data available with stock exchange showed.
Despite positive stock-specific rise in index heavyweights, gains on benchmark indices were capped as investor sentiment was hit by weak macroeconomic data release after market hours on Thursday, traders said.
Output of eight core infrastructure industries contracted by 5.2 per cent in September, the lowest in the decade, indicating the severity of economic slowdown.
The eight core sectors had expanded by 4.3 per cent in September 2018, according to official data.
Globally, bourses in Shanghai, Hong Kong and Seoul were trading higher on optimism over the US-China trade deal, while those in Tokyo were in the red.
On Wall Street, stock exchanges finished on a mixed note on Thursday after the US House of Representative voted to approve the process to impeach President Donald Trump, the third time in the history of the modern presidency.
The rupee, meanwhile, depreciated 4 paise against the US dollar to trade at 70.96 in early session.