HDFC Bank, ITC and ICICI Bank are among the top gainers, while losers include TCS, Tech Mahindra and HCL Tech on the Sensex pack.
The Sensex rose 155 points at 37,237, in the morning trade, while the Nifty index gained 51 points, or 0.46%, at 10,998.
Asian stock markets are trading higher on Friday following strong gains on the Wall Street overnight amid signs that Beijing is open to a resolution of its trade war with the US.
Shares of ICRA fell 2% after the company sacked its CEO Naresh Takkar after sending him on leave in July this year.
Shares of Glenmark Pharmaceuticals rose 1% after it has been granted final approval by the USFDA for Pimecrolimus Cream, 1%, a generic version of Elidel 1 Cream, 1%, of Bausch Health US, LLC.
The Indian rupee opened flat at 71.78 per dollar on Friday.
On the economy front, subdued global demand and some slack in government consumption expenditure led to a moderation in economic activity during 2018-19, the Reserve Bank of India said on Thursday in its annual report for the year.
According to the RBI Annual report, the number of cases of frauds reported by banks saw a jump of 15% in 2018-19 on yoy basis, with the amount increasing by 73.8% in the year.