The BSE Sensex fell on Friday led by declines in bank shares as RBI chief Raghuram Rajan's comments on inflation being still high, were seen weighing on market sentiment.
The BSE Sensex fell 0.27 per cent while the broader NSE index was down 0.25 per cent at 1021 am.
However, shares in Bharat Petroleum Corporation Ltd surged 8.73 per cent and Videocon Industries Ltd was up 2.6 per cent after a drilling campaign off Brazil's northeastern coast showed that an area controlled by Petrobras and the Indian companies likely holds more than a billion barrels of oil.
Sun Pharmaceuticals Industries gained 1.5 percent after earlier touching an all-time high of 597.50 rupees on expectations of higher sales of its key cancer drug.
The BSE benchmark rose over 87 points in early trade on the back of increased buying by participants amid a mixed trend on other Asian bourses and further strength in the rupee.
The 30-share index gained 87.72 points, or 0.44 per cent, to trade at 19,981.57, with all the sectoral indices led by consumer durables and oil and gas rising up to 1.27 per cent. Sensex had gained 37.61 points yesterday.
The wide-based National Stock Exchange index Nifty rose 23.30 points, or 0.40 per cent, to trade higher at 5,905.55.
Brokers said pick up in buying by funds and retail investors, tracking a mixed trend on other Asian bourses, following overnight gains in the US markets on better-than-forecast jobless claims, supported the trading sentiment here.
Besides, further rise in the rupee to 61.86 against the dollar also triggered buying activity, they said.
In Asia, Hong Kong's Hang Seng index was up 0.08 per cent, while Japan's Nikkei lost 0.16 per cent in early trade.
The US Dow Jones Industrial Average ended 0.36 per cent higher yesterday.