Persistent capital inflows from foreign funds also boosted the market sentiment. They bought shares worth a net Rs 1,272.93 crore on Thursday, as per provisional data from the stock exchanges.
The 30-share index Sensex opened higher at 21,823.52 points and firmed up further to a high of 21,870.11 on strong initial buying.
But, it declined afterwards to 21,775.00 on selling pressure before quoting 21,777.39 points at 1000 hours, still showing a gain of 37.30 points or 0.17 percent from its last close.
The NSE 50-share barometer Nifty also moved up by 18.55 points or 0.29 percent to 6,501.65 at 1000 hours.

Indian and Asian shares find their footing after Wall Street shook off concerns about Federal Reserve policy.

Continuous buying from foreign institutions also supports the gains in India. Overseas investors bought shares worth of $117.87 million on Thursday, marking their 23rd buying session in the previous 24, provisional exchange and regulatory data shows.

Blue chips broadly recover from Thursday's falls. State Bank of India gains 1.6 percent after falling 1.81 percent on Thursday.

Metal stocks are also in favour on value buying: Tata Steel gains 2.1 percent, and Hindalco Industries is up 2.6 percent.

But Axis Bank is flat after the government launched an offer to sell up to a 9 percent stake in to raise up to $935 million.

Major gainers were Tata Steel (1.84 pct), Larsen (1.16 pct), Tata Power (1.15 pct), BHEL (1.14 pct), Wipro (1.14 pct), SSLT (0.98 pct), Bharti Airtel (0.98 pct) and SBI (0.94 pct).
Asian shares rose in their early trade as investors looked towards US non-farm payrolls report later in the global day for confirmation that US employment picture has improved.
Key benchmark indices in China, Singapore, Japan, South Korea, Indonesia, Taiwan and Hong Kong were up 0.01 to 0.72 percent.
US stocks were mostly higher on Thursday, sending the Standard & Poor's 500 Index to an all-time high, as data showed jobless claims fell to the lowest level in three months and investors watched developments in Ukraine.


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