The BSE Sensex is up around 200 points, while the Nifty has gained more than 50 points. Private banks continue to gain for a second day after banking stocks saw their biggest single-day gains in over 4 years on Thursday after the Reserve Bank of India raised overseas borrowing limits for lenders as part of a slew of measures unveiled by new Governor Raghuram Rajan.

ICICI Bank rises 4.6 percent, while IndusInd Bank is up 0.5 percent.

IT shares recover from a bout of profit-taking on Thursday. Infosys gains nearly 2 per cent, while Tata Consultancy Services (TCS) is up 0.5 per cent.

However, Sesa Goa Ltd falls as much as 5.9 per cent as the lock-in period related to its merger with Sterlite Industries (India) Ltd ended as of the close of trade on Thursday.

The BSE Sensex and the Nifty rose nearly 1 per cent at 12.17 pm.