The BSE benchmark Sensex continued to rule above the 20,000 level during late morning session due to buying in refinery and PSU sectors.
The operators feel lower oil subsidy burden will improve government's finances after it allowed PSU oil manufacturing companies to change diesel prices by a small margin from time to time.
Sustained capital inflows from foreign funds also boosted the market sentiment.
The BSE-30 share index, Sensex, resumed higher at 20,038.67 and moved up further to 20,126.55 before quoting 20,086.62 points at 1030 hrs.
It showed a net gain of 122.59 points or 0.61 per cent from its last close.
Foreign institutional investors (FIIs) bought shares worth a net Rs 564.20 crore yesterday, as per provisional data from the stock exchanges.
The NSE 50-share index, Nifty, also moved up by 31.55 points or 0.52 per cent quoting 6,070.15 at 1030 hrs.
Major gainers were - ONGC (7.97 per cent), Maruti (3.44 pc), Gail India (3.07 pc), Coal India (1.57 pc), SBI (1.48 pc), Cipla (1.25 pc) and Hindalco (1.19 pc).
Asian stocks also rose after economic reports in the world's two largest economies, the US and China, beat estimates.
Key benchmark indices in Hong Kong, Indonesia, Japan, Taiwan, Singapore and South Korea rose by 0.36 to 2.56 per cent.
Stocks More on Maruti
Company INFO More on ONGC
GLOBAL MARKETS ROUND UP
Nifty futures on the Singapore Exchange rose 0.36 percent. The MSCI-Asia Pacific index, excluding Japan was up 0.51 percent.
Asian shares advanced on Friday as encouraging Chinese data confirmed a recovery was on track in the world's second largest economy, cementing positive sentiment after global equities rose overnight.
Stronger-than-expected data on U.S. housing starts and jobless claims lit a fire under stocks on Thursday, pushing the S&P 500 to a five-year high and its third day of gains.
FACTORS TO WATCH
Earnings: Reliance Industries Ltd, HDFC Bank , ITC Ltd
Kingfisher Ltd's core lenders to meet SEBI's board meeting
INDIAN STOCKS TO WATCH
India's government told fuel retailers to raise the price of subsidised diesel in small amounts every month starting Friday in an attempt to prop up public finances without causing a popular backlash before elections.
The government has called for increases of about 1 U.S. cent per litre each month, a source at one of the oil retailers with direct knowledge of the development told Reuters on Thursday.
Bulk buyers will have to pay market rates for diesel, which accounts for 40 percent of fuel consumption in the country, the source, who requested anonymity, said.
India slapped a duty of 2.5 percent on imports of crude edible oils on Thursday, aiming to hold down purchases by the world's top vegetable oil buyer after No. 2 producer Malaysia set export tax at zero in a battle for market share with rival Indonesia.
Reliance Industries Ltd is yet to finalise a concrete plan of action to launch its much-hyped 4G technology services, according to sources from the company, industry and the vendor community.
India's third stock exchange, MCX-SX, is all set to launch equity trading on its platform on Feb. 9, according to sources.
Finance Minister P Chidambaram will ring the opening bell at MCX-SX in Mumbai, government officials in New Delhi said, and other sources said event organisers have been asked to block dates during February 8-15 to accommodate any last minute changes in the finance minister's plan.
The Indian affiliate of global accounting firm PricewaterhouseCoopers was questioned on Thursday by tax authorities looking into possible tax evasion by
The Cabinet Committee of Economic Affairs on Thursday authorised the National Investment Fund to buy shares of public sector enterprises, including banks and insurance companies.
Wipro Ltd posted an 18 percent gain in quarterly profit, joining bigger rivals Tata Consultancy Services Ltd and Infosys Ltd in reporting better-than-expected earnings. India's $100 billion IT outsourcing sector, which earns the bulk of its revenue from exports of software services, won a long-sought and favourable clarification over the tax treatment of some of the money it earns overseas.
Hero MotoCorp Ltd missed estimates for the fourth straight quarter on Thursday as net profit fell 20.4 percent on rising costs and falling sales that battered margins. AIRLINES
Air India has closed bookings on Boeing Co Dreamliner-operated flights "for the time being", the airline said on Thursday.
The Supreme Court has asked the aviation regulator and the industry to explain the rationale of imposing charges over and above base fares on airline passengers, appearing to disregard airlines' defence that these levies were needed to deal with fluctuating market conditions.
GMR Infrastructure and GVK Power & Infrastructure are walking out of road contracts as they are unable to get funding for these projects and not because of environmental clearance or regulatory hurdles, the National Highways Authority of India chief said.