After surging ahead from the opening sessions, the market held on to its extended gains, led by a rally in banks.
The Sensex was up 117.89 points at 29450.05, while the Nifty was up 30.80 points at 9117.10.
The market breadth was narrowing as 1,031 shares declined against an advancement of 1,435 shares. Around 169 shares were unchanged.
ICICI Bank, SBI and Bank of Baroda were top gainers on the indices, while Bajaj Auto, TCS, Grasim and Tech Mahindra were the top losers.
The S&P BSE Banking index rose and the Nifty Bank rose 1 percent each in trade on Friday, led by gains in Bank of India, Bank of Baroda, ICICI Bank, PNB, Federal Bank and Canara Bank.
Banking stocks gained traction after the Finance Minister said that the government is going to announce a policy to push for the quick settlement of the non-performing assets (NPA) at banks in a ‘couple of days’ at CNBC-TV18’s IBLA Awards on Thursday.