The BSE Sensex climbed on Friday, led by ICICI Bank and software services exporter Wipro, on expectations for improving outlook for the domestic and world economy and rising foreign portfolio investments.
The growth sentiment is slightly changing from negative, because the global trends are showing some positive view, said R.K. Gupta, managing director of Taurus Mutual Fund.
All the top-notch IT companies have shown positive growth, which is an indication of a change of growth sentiment.
Wipro, which gets most of its revenue from exports, rallied more than 5 percent after the No. 3 software services company reported a 10.4 percent rise December quarter profit, almost in line with market expectations.
The company said it expects $1.52 billion to $1.55 billion revenue in the March quarter from its IT services unit, which contributes three-quarters of its total sales, a sequential rise of nearly 1 to 3 percent.
Larger rivals Tata Consultancy Services was up 0.86 percent and Infosys was flat.
By 10:05 a.m. (0435 GMT), the 30-share BSE index was up 0.6 percent at 16,738.7, by with 21 of its components rising.
ICICI Bank, the country's second-largest lender, rose 3.92 percent and bigger rival State Bank of India (SBI.NS) gained 1.81 percent on growth prospects after U.S banks reported stronger earnings, sending positive currents across global markets.
Gupta said the central bank, which review policy next Tuesday, could give some good news to the banking sector. He did not elaborate.
Economists polled by Reuters said the Reserve Bank of India would not cut interest rates at the review, but they nearly unanimously expected the central bank to do so by the end of June.
The BSE index, which slumped almost a quarter in 2011 as a slew of rate increases to fight inflation crimped spending and hit corporate earnings, has risen more than 7 percent since the new year began.
Energy conglomerate Reliance Industries (RELI.NS) was down 0.6 percent ahead of its quarterly earnings expected after market hours.
The company, India's largest by market value, is expected to report its first drop in quarterly profit in more than two years, as refining margins narrow and gas output from its offshore fields slows down.
The 50-share NSE index was up 0.4 percent at 5,039.15. In the broader market, 832 gainers were ahead of 388 losers on total volume of about 135.44 million shares.
Diversified ITC (ITC.NS), the country's largest cigarette maker, rose 0.6 percent ahead of its results.
The company, whose largest shareholder is British American Tobacco Plc (BATS.L), is expected to report a 17 percent rise in December quarter net profit according to Thomson Reuters I/B/E/S, aided by modest volume growth and continuous price hikes.
Asian shares extended gains to two-month highs on hopes of a possible solution to the euro zone debt crisis was nearing and upbeat earnings from more U.S. banks.
The MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS rose 0.25 percent and Japan's Nikkei was up 1.35 percent.
STOCKS ON THE MOVE
* SKS Microfinance (SKSM.NS) fell as much as 8 percent after the lender reported a loss for the third consecutive quarter.
* KNR Constructions Ltd (KNRL.NS) rose more than 4 percent after it won a contract worth 2.07 billion rupees.
* IFCI (IFCI.NS) slipped 3.5 percent after its December quarter net profit fell 25 percent.
* MBL Infrastructures Ltd (MBLI.NS) rose 1.7 percent after it won three projects worth 1.26 billion rupees.
TOP THREE BY VOLUME
* Indiabulls Real Estate IBRL.NS on 6.8 million shares
* IFCI (IFCI.NS) on 6.62 million shares
* Lanco Infratech (LAIN.NS) on 5.64 million shares