The benchmark BSE Sensex extended gains for the second straight day by adding nearly 111 points in early trade Friday on sustained capital inflows after the country reported positive economic data Thursday.
The 30-share barometer rose 110.69 points, or 0.43%, to 25,686.90 with stocks of realty, capital goods, power, PSU, metal and oil & gas sectors leading the gains.
The index had jumped 102.32 points in the previous session.
Similarly, the National Stock Exchange index Nifty moved up by 8.30 points, or 0.11%, to 7,658.20.
Brokers said buying activity gathered momentum as the factory output growth rebounded to 13-month high of 3.4% in April and retail inflation eased to 8.23% in May on account of falling prices of essential food items.
They said, however, a weak trend on other Asian bourses on concerns about the growing crisis in Iraq and overnight losses in the US markets, capped the gains here.
Among other Asian markets, Hong Kong's Hang Seng fell by 0.32% while Japan's Nikkei shed 0.87% in early trade Friday.
The US Dow Jones Industrial Average ended 0.65% lower in Thursday's trade.