The benchmark BSE Sensex jumped over 215 points to regain the 28,000-level after a gap of nearly one month during mid-session trading on Friday on across-the-board buying, led by shares of SBI and ITC.
Besides, a firming trend at other Asian markets influenced trading sentiments, brokers said.
The 30-share index flared up by 215.32 points, or 0.77 per cent, at 28,024.67 in afternoon trade.
The gauge has scaled the 28,000-mark after nearly one month as the last time Sensex traded above this mark was on April 23.
Sentiments were buoyed on continued hopes of rate cut by the Reserve Bank at its policy review early next month amid expectations that State Bank of India and ITC may post encouraging financial results later in the day, brokers added.
All sectoral indices, led by banking, PSUs, FMCG and capital goods, were trading in positive zone with gains up to 1.03 per cent.
Also, the 50-share NSE Nifty was quoting higher by 53.65 points, or 0.63 per cent, at 8,474.65.
SBI shares surged 2.82 per cent to Rs 297.50 while ITC was trading 1.42 per cent up at Rs 332 as participants enlarged positions ahead of these companies' quarterly earnings.
Other prominent gainers among the 30 Sensex stocks were HDFC Ltd, Sun Pharma, TCS, ICICI Bank, ONGC, Gail, L&T, Tata Motors, Axis Bank, BHEL, Coal India, RIL and M&M.
Rupee Up 5 Paise In Early Trade
The rupee edged higher marginally by 5 paise to 63.59 against the US dollar in early trade on continued selling of the American currency by banks and exporters.
Forex dealers said that besides the sustained selling, dollar's weakness against other currencies overseas, coupled with a higher opening in the domestic equity market, supported the rupee at the Interbank Foreign Exchange.
The local currency had surged 18 paise to 63.64 in on Thursday's trade on fresh selling of the dollar amid the latter's weakness in overseas markets.
Meanwhile, the benchmark BSE Sensex recovered 77.80 points, or 0.27 per cent, to 27,887.15 in early trade.