Markets rose Friday as Asian markets firmed, heavyweight Reliance Industries rallied, and investors looked past a high domestic inflation reading, while automaker Tata Motors surged after reporting improved demand.
The Nifty 50 was up 1.03% around 15,970 in early trade, with all major sub-indices trading higher, while Sensex rose 0.93% to around 53,420.
The benchmark indices, which declined more than 2% each in the previous session, are set to snap their five-day losing streak if Friday's gains hold. Still, they're on track to post their longest weekly losing streak since 2020.
Reliance Industries jumped 2.4%, and was set to snap a nine-day losing streak.
Bajaj Finance, Bajaj Finserv were among the top Nifty 50 gainers, advancing over 1% each.
Nifty's Auto index was the top gainer among other sub-indices, adding 3%. Tata Motors led the jump with its 8.8% climb after reporting a smaller quarterly loss and saying it will meet yearly profit and cashflow targets.
Nifty components State Bank of India and Eicher Motors were up 0.8% and 2%, respectively, ahead of their quarterly results announcement.
In global markets, Asian shares rose and the dollar remained at 20-year highs.
"With many days of selling in the domestic and global markets, and after two key inflation data from India and US already discounted, we're seeing some kind of a relief rally," said Narendra Solanki, head of equity research at Anand Rathi Investment Services.
India's annual retail inflation rose by a more-than-expected 7.79% in April, staying above the Reserve Bank of India's tolerance band of 6% for a fourth straight month.
The market will take further cues based on the quantum or steepness of the rate hikes by the central banks, Solanki said.